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

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...read more.

Industry Statistics & Market Size
Revenue
$105bn
Annual Growth 11-16
-13.0%
Forecast Growth 16-21
Profit
Employment
100,472
Businesses
10,127
What Our Customers Say

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
  • Industry Report - Industry Locations Chapter

    The geographical spread of the Investment Banking and Securities Dealing industry generally follows the distribution of urban population centers across the United States. Establishments are most concentrated in areas of historically high economic activity and a prevalence of other operators in the financial services sector. The industry has traditionally been centered in New York City where many major industry operators are headquartered or have significant operations. There are also significant concentrations of industry operators in other major urban centers such as Boston, Chicago, Dallas, St. Louis, San Francisco and Los Angeles. Ove...purchase to read more.

    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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    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

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    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

  • 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
    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
    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

  • 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
    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
    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’s Investment Banking & Securities Dealing Industry Research Report offers insight into the market at the national level. Our analysis highlights macro trends in the overall sector and the micro trends faced by companies that do business in the Investment Banking & Securities Dealing industry. Our five-year outlook forecasts explain how the market is set to change and the product segments that will drive growth.

    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
    • Quickly build competitive intelligence
    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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