Big deal: The government debt securities market has grown, benefiting the industry

The Money Market Dealers industry has been volatile over the past five years, but risen overall on the back of stronger government debt securities issuance over the period. Industry revenue is forecast to rise at an annualised 2.5% over the five years through 2017-18, to reach $6.6 billion. Over the period, financial institutions and corporations have shifted to relatively longer term funding alternatives, such as hybrid securities and equities, to meet their regulatory requirements. Despite the shift towards longer term funding, the repo and government debt securities markets have grown and is expected to contribute to a 1.6% rise in industry revenue in the current year...read more.

Industry Statistics & Market Size
Revenue
$7bn
Annual Growth 13-18
2.5%
Forecast Growth 18-23
Profit
Employment
1,686
Businesses
65

Industry Threats & Opportunities

  • Strong government debt securities and repo activity has supported industry growth
  • In Australia, the largest money market dealers are the banks, which also issue the securities
  • Rising demand for credit is expected to support industry revenue growth over the next five years
  • Industry Report - Industry Key Buyers Chapter

    The Money Market Dealers industry is characterised by a medium level of market share concentration. The four major banks account for an estimated 66.3% of money market securities turnover. Dealing in short-term debt securities is often part of the overall value propositions of the major commercial and investment banks in Australia. Clients engage industry operators for their capital and financing needs like issuing short-term debt securities. With growth in the repo market, non-banking financial institutions and other corporations in the money market have become increasingly involved in the industry. However, many of these companies deal through the major banks. As a result, the four major banks remain an integral part of the industry...purchase to read more.

    Additional Insights for the Money Market Dealers Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Money Market Dealers Industry are

  • Downstream ownership links
  • Economies of scope
  • Access to highly skilled workforce
  • IBISWorld analysts also discuss how external factors such as Cash rate and All Ordinaries index in the Money Market Dealers industry impact industry performance..

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    What's in this report

    What is the Money Market Dealers Industry?

    Money market dealers primarily buy and sell short-term debt securities, such as bank bills and negotiable certificates of deposit. These businesses participate in the short-term money market and deal with other liquid placements. These businesses also hold and deal securities issued by the Federal Government. The industry also includes businesses that accept deposits and provide finance, but excludes the operations of banks, building societies and credit unions.

    Industry Products
  • Repurchase agreements
  • Government securities
  • Bank and corporate debt
  • Industry Activities
  • Bill of exchange discounting or financing (except by banks)
  • Money market dealing
  • Commercial finance company operation
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Cash rate
  • All Ordinaries index
  • Amount of equity capital raising
  • Household savings ratio

  • Current Performance
  • Industry characteristics
  • Government spending
  • Alternative financing
  • Corporate borrowing
  • Chart: Revenue Growth

  • Industry Outlook
  • Demand for credit
  • Funding sources
  • Government debt
  • Table: Money Market Dealers Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Money Market Dealers Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Finance
  • Professional Services
  • Investment Banking and Securities Brokerage

  • Key Selling Industries
  • Finance
  • Professional Services

  • Products & Services
  • Government securities
  • Repurchase agreements
  • Bank and corporate debt
  • Chart: Money Market Dealers Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Banks
  • Other
  • Fund managers
  • Government and central banks
  • Chart: Major Market Segmentation for the Money Market Dealers 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 Money Market Dealers

  • Basis of Competition
  • Internal
  • External

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Money Market Dealers Industry

  • Industry Globalization
    National Australia Bank Limited, Westpac Banking Corporation, Commonwealth Bank of Australia, Australia and New Zealand Banking Group Limited,
  • Table: National Australia Bank Limited - financial performance
  • Table: Westpac Banking Corporation - financial performance
  • Table: Commonwealth Bank of Australia - financial performance
  • Table: Australia and New Zealand Banking Group Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Money Market Dealers 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 Money Market Dealers Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Adi
  • An authorised deposit-taking institution.
  • Certificate Of Deposit
  • Short-term debt securities that are guaranteed by a bank.
  • Corporate Paper
  • Bills and promissory notes issued by commercial enterprises.
  • Loan Principal
  • The amount borrowed on a loan, from which the interest is calculated.
  • Mmc
  • A money market corporation.
  • Repo
  • A repurchase agreement, where the seller of a security agrees to buy-back the security at a higher price on a later date. The difference between the selling and buy-back price represents the interest.
  • Semi-Government Paper
  • Securities issued by state governments, the Defence Housing Authority, the Civil Aviation Authority, the Federal Airports Corporation and other government bodies.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Money Market Dealers market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

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    This report on Money Market Dealers:
    • 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 Money Market Dealers 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 Money Market Dealers, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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