Overview

Boom and bust: Though economic improvements will boost demand, regulations will limit growth

IBISWorld’s Investment Banking & Securities Dealing market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

REPORT SNAPSHOT

Industry Threats & Opportunities

  • The industry’s largest players should benefit from the uptick in interest rate volatility in the years ahead
  • Trade volumes continue to fall, most notably in equity securities that underpin industry revenue
  • The industry will benefit from increased fees on trades as well as through new technologies that will further drive down average trading costs

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    Industry Analysis & Industry Trends

    Despite fee growth from the Investment Banking and Securities Dealing industry's traditional underwriting and advisory services, both cyclical and structural influences on trading activity have ultimately harmed revenue for operators in recent years. Industry revenue is expected to decline over the five years to 2016. However, this decline does not tell the full story of the industry's immense recessionary losses and rapidly evolving competitive landscape. Industry revenue is still failing to exceed prerecessionary highs. Yet, the industry's smaller operators continue to evolve. Since competing in FICC requires scale and massive investments in technology and compliance, boutique investment banks have alternatively focused on merger and acquisition...

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    Industry Report - Starting a New Business Chapter

    Capital and regulatory requirements within the banking sector provide the largest barriers to entry into the Investment Banking and Securities Dealing industry. The level of industry regulation is increasing and is likely to include the requirement that investment banking activities be supported by an increased level of tier 1 capital, which consists of common stock and disclosed reserves (or retained earnings), but it may also include non-redeemable, noncumulative preferred stock.

    Traditional barriers to entry for the industry also include relationships, reputation, economies of scale and research departments that rely on a limited supply of talented labor. Est..

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    Additional Insights for the Investment Banking & Securities Dealing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Investment Banking & Securities Dealing Industry are

  • Market research and understanding
  • Access to a highly skilled workforce
  • Having a high profile in the market
  • IBISWorld analysts also discuss how external factors such as Corporate profit and Investor uncertainty in the Investment Banking & Securities Dealing industry impact industry performance..

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    Industry Products

    What is the Investment Banking & Securities Dealing Industry?

    This industry is composed of companies and individuals that provide a range of securities services, including investment banking and broker-dealer trading services. They also offer banking and wealth management services and engage in proprietary trading (trading their own capital for a profit) to varying degrees. Investment banking services include securities underwriting and corporate financial services while trading services include market making and broker-dealer services.

    Industry Products
    Underwriting services (debt)
    Trading and related services
    Underwriting services (equity)
    M&A advising fees
    Corporate finance services
    Other financial advisory fees
    Industry Activities
    Underwriting, originating or maintaining markets for securities issuance
    Principal and proprietary trading
    Providing corporate strategy advisory services
    Providing corporate finance services

    Table of Contents

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Corporate profit
  • Investor uncertainty
  • S&P 500
  • Initial public offerings
  • Regulation for the Investment Management industries

  • Current Performance
  • Cyclical and structural influences on trading revenue
  • Smaller operators evolve
  • Chart: Revenue Growth

  • Industry Outlook
  • Cyclical and structural influences on trading revenue
  • Smaller operators evolve
  • Table: Investment Banking & Securities Dealing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Investment Banking & Securities Dealing Industry Lifecycle vs The Economy

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Life Insurance & Annuities
  • Health & Medical Insurance
  • Reinsurance Carriers
  • Retirement & Pension Plans
  • Health & Welfare Funds
  • Open-End Investment Funds
  • Consumers

  • Key Selling Industries
  • Stock & Commodity Exchanges

  • Products & Services
  • Underwriting services (debt)
  • Trading and related services
  • M&A advising fees
  • Underwriting services (equity)
  • Corporate finance services
  • Other financial advisory fees
  • Chart: Investment Banking & Securities Dealing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Financial operators
  • Other
  • Energy and power operators
  • Industrial operators
  • Healthcare operators
  • High technology operators
  • Materials operators
  • Real estate operators
  • Chart: Major Market Segmentation for the Investment Banking & Securities Dealing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Brokerage, clearing and exchange fees
  • Other costs
  • Chart: Cost Structure Benchmarking – Sector vs Investment Banking & Securities Dealing

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Investment Banking & Securities Dealing Industry

  • Industry Globalization
    Major Companies
    Bank of America Corporation JPMorgan Chase & Co.Citigroup Inc.Morgan StanleyThe Goldman Sachs Group Inc.
  • Table: Bank of America Corporation - financial performance
  • Table: JPMorgan Chase & Co. - financial performance
  • Table: Citigroup Inc. - financial performance
  • Table: Morgan Stanley - financial performance
  • Table: The Goldman Sachs Group Inc. - financial performance

  • Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Investment Banking & Securities Dealing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Key Statistics
    Table: Industry Data for the Investment Banking & Securities Dealing Industry
    Includes:
  • Industry Revenue (2007-2021)
  • Industry Gross Product (2007-2021)
  • Establishments (2007-2021)
  • Businesses (2007-2021)
  • Employment (2007-2021)
  • Wages (2007-2021)
  • Corporate Profit (2007-2021)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Jargon & Glossary
    Initial Public Offering (Ipo)
  • When a company (called the issuer) issues common stock or shares to the public for the first time.
  • Leveraging
  • Investing with borrowed money, which can increase potential gains but also risks greater losses.
  • Market-Making
  • Buying, selling or otherwise transacting with customers under a variety of market conditions and providing prices in response to customer requests.
  • Tier 1 Capital
  • Secure and transparent core capital comprising equity capital and disclosed reserves.
  • Troubled Asset Relief Program (Tarp)
  • A program instituted by the US government to purchase assets and equity from financial institutions in order to strengthen the financial sector.
  • Volcker Rule
  • A specific section of the Dodd-Frank Wall Street Reform and Consumer Protection Act that restricts US banks from making certain kinds of speculative investments that do not benefit their customers.
  • Why buy this report?

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
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    This report on Investment Banking & Securities Dealing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Investment Banking & Securities Dealing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Investment Banking & Securities Dealing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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