Overview

Do not bank on it: Subdued growth in money markets will limit industry revenue

IBISWorld’s Money Market Dealers market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

REPORT SNAPSHOT

Industry Threats & Opportunities

  • The repurchases market has grown significantly, supporting industry revenue growth
  • In Australia, the largest money market dealers are the banks, which also issue the securities
  • Profitability will decline slightly as funding costs rise due to increases in the cash rate

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    Industry Analysis & Industry Trends

    The Money Market Dealers industry has been volatile over the past five years, although industry revenue has returned to the levels reported at the start of the five-year period. Overall, industry revenue is expected to rise at an annualised 0.1% over the five years through 2016-17, to reach $5.7 billion. Over this period, financial institutions, governments and corporations have shifted to relatively longer term funding alternatives, such as hybrid securities, treasury bonds, and equities, to meet their regulatory requirements. Despite the shift towards longer term funding, the repurchases (repo) market has grown significantly over the period and should contribute to industry revenue rising by an anticipated 4.6% in 2016-17...

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    Industry Report - Industry Analysis Chapter

    The Money Market Dealers industry actively trades in the short-term money market. This includes buying and selling short-term securities such as bank bills, certificates of deposit, corporate paper, government debt securities and repurchase agreements. Operators deal largely in the wholesale market with other financial institutions, large corporations and government agencies. Despite international trade not applying, the industry exhibits a moderate level of globalisation through the number of foreign banks participating in the market and the numerous high-value trades executed daily.

    In 2014-15, money market dealers turned over an estimated $10.9 trillion in short-term debt securities. In comparison, only $1.3 trillion in Australian shares were traded over the same period. The..

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    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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    New Zealand Special Report

    Industry Products

    What is the Money Market Dealers Industry?

    Money market dealers are primarily engaged in buying and selling short-term debt securities, such as bank bills and negotiable certificates of deposit. They participate in the short-term money market and deal with other liquid placements. The businesses are also involved in holding and dealing securities issued by the Federal Government. The industry also includes those accepting deposits and providing finance, but excludes the operations of banks, building societies and credit unions.

    Industry Products
    Repurchase agreements
    Bank bills
    Corporate paper
    Treasury notes
    Semi-government paper
    Industry Activities
    Bill of exchange discounting or financing (except by banks)
    Money market dealing
    Commercial finance company operation

    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
  • Cash rate
  • All Ordinaries index
  • Amount of equity capital raising
  • Household savings ratio

  • Current Performance
  • Industry characteristics
  • Alternative financing
  • Government spending
  • 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

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

  • Key Selling Industries
  • Finance
  • Investment Banking and Securities Brokerage
  • Professional Services

  • Products & Services
  • Repurchase agreements
  • Bank bills
  • Corporate paper
  • Semi-government paper
  • Treasury notes
  • Chart: Money Market Dealers Industry Products and Services Segmentation

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

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Money Market Dealers

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

  • Industry Globalization
    Major Companies
    National Australia Bank LimitedWestpac Banking CorporationCommonwealth Bank of AustraliaAustralia 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

  • Operating Conditions
    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
    Key Statistics
    Table: Industry Data for the Money Market Dealers Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Jargon & Glossary
    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.
  • 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
    • Quickly build competitive intelligence
    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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