New kids on the stock: Opening share clearing to competitors should entice new entrants

The Custody, Trustee and Stock Exchange Services industry offers a range of services, mostly catering to other operators in the Finance division. Custodial, trustee and administration services account for the largest share of industry revenue. Other industry services include stock exchange operations, clearing services, share registry services, credit card administration and non-bank foreign currency exchange. Although these services are all different, their performance is based on some common drivers, including the value of funds under management, sharemarket performance and the level of activity in financial markets. Overall, industry revenue is expected to grow at a compound annual rate of 1.6% over the five years through 2018-19, to $14.6 billion...read more.

Industry Statistics & Market Size
Revenue
$15bn
Annual Growth 14-19
1.6%
Forecast Growth 19-24
Profit
Employment
97,825
Businesses
20,464

Industry Threats & Opportunities

  • The amount of funds under management is expected to grow, supporting industry revenue
  • Merchant surcharges, a key source of revenue for the industry, have come under scrutiny
  • An increase in funds under administration of trustee companies will likely improve profit margins
  • Industry Report - Industry Locations Chapter

    Industry establishments are mostly located in the Australian financial capitals of Sydney and Melbourne. Most enterprises in the Finance subdivision are located in either one or both of these capitals, close to other financial services providers. Hence, 63.5% of establishments in the Custody, Trustee and Stock Exchange Services industry are located in either Victoria or New South Wales.Due to the fragmented nature of industry activities, firms’ geographical distribution differs among segments. Stock exchange operations are concentrated in New South Wales as the ASX is located in Sydney. Share registry services are also concentrated in Sydney, although Computershare is headquartered in Melbourne. Cre...purchase to read more.

    Additional Insights for the Custody, Trustee and Stock Exchange Services Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Custody, Trustee and Stock Exchange Services Industry are

  • Well-developed internal processes
  • Extensive distribution and collection network
  • Qualified work force
  • IBISWorld analysts also discuss how external factors such as Number of stock market trades and All Ordinaries index in the Custody, Trustee and Stock Exchange Services industry impact industry performance..

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    What's in this report

    What is the Custody, Trustee and Stock Exchange Services Industry?

    The industry provides a variety of nominee, trustee, custody and other services to the finance and investment sector. The industry includes establishments that provide stock exchange and share registry services, credit card administration services and non-bank money changing services.

    Industry Products
  • Stock exchange and clearing house operations
  • Share registry services
  • Other services
  • Credit card administration services
  • Custodial, trustee and administration services
  • Industry Activities
  • Providing executor services
  • Providing non-bank money changing services
  • Operating share registries
  • Operating stock exchanges
  • Providing trustee services
  • Credit card administration
  • Operating clearing houses
  • Providing custody services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Number of stock market trades
  • All Ordinaries index
  • Value of managed funds
  • Ratio of credit card debt to discretionary income

  • Current Performance
  • Stock exchange and share registry
  • Growing competition
  • Technological change
  • Credit cards
  • Services to

    managed funds

  • Profitability and

    other trends

  • Chart: Revenue Growth

  • Industry Outlook
  • Stock exchange and share registry services
  • Managed funds
  • Trustee services
  • Credit cards
  • Table: Custody, Trustee and Stock Exchange Services Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Custody, Trustee and Stock Exchange Services Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Investment Banking and Securities Brokerage
  • Financial Planning and Investment Advice

  • Key Selling Industries
  • Financial Asset Investing
  • Foreign Banks
  • Funds Management Services
  • Investment Banking and Securities Brokerage
  • Life Insurance
  • Money Market Dealers
  • National and Regional Commercial Banks
  • Superannuation Funds

  • Products & Services
  • Custodial, trustee and administration services
  • Credit card administration services
  • Other services
  • Share registry services
  • Stock exchange and clearing house operations
  • Chart: Custody, Trustee and Stock Exchange Services Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Superannuation funds
  • Corporate clients
  • Merchants
  • Public unit trusts
  • Life insurance offices
  • Stockbrokers
  • Other markets
  • Chart: Major Market Segmentation for the Custody, Trustee and Stock Exchange Services Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Custody, Trustee and Stock Exchange Services

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Custody, Trustee and Stock Exchange Services Industry

  • Industry Globalization
    Visa Inc., MasterCard Australia Holding Pty Ltd, ASX Limited,
  • Table: Visa Inc. - financial performance
  • Table: MasterCard Australia Holding Pty Ltd - financial performance
  • Table: ASX Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Custody, Trustee and Stock Exchange Services 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 Custody, Trustee and Stock Exchange Services Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Dark Pools
  • Private exchanges for trading securities, as opposed to public exchanges, such as the ASX and NASDAQ. The details of trades in dark pools are not displayed to other market participants.
  • Funds Under Administration (Fua)
  • A pool of investor assets collectively administrated. This includes legally holding the assets, but does not include making investment decisions on behalf of the investor.
  • Funds Under Management (Fum)
  • A pool of investor assets collectively managed. Funds managers make investment decisions on behalf of the investor. These decisions are then executed by the funds administrator.
  • High-Frequency Trading
  • Trading based on algorithms in which large volumes of shares are bought and sold automatically at high speeds across multiple markets.
  • Risk Appetite
  • The amount and type of risk that an organisation or individual is willing to take in order to meet their objectives.
  • What Our Customers Say

    Why buy this report?

    The Custody, Trustee and Stock Exchange Services market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    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 Custody, Trustee and Stock Exchange Services:
    • 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 Custody, Trustee and Stock Exchange Services 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 Custody, Trustee and Stock Exchange Services, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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