Banking on reform: The industry's regulations have tightened over the past five years

The Investment Banking and Securities Brokerage industry has endured extensive volatility since the onset of the financial crisis. Despite sweeping regulatory changes, intermittent scandals, large fines for misconduct and an uncertain political environment, the industry has expanded over the past five years. The industry quickly rebounded following the financial crisis as unstable conditions drove up trading volumes and margins. However, some operators were severely affected by the financial crisis and either entered bankruptcy or eventually had to be bailed out.The industry's regulatory environment has tightened over the past five more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • Ring-fencing regulation and capital standards are expected to change industry dynamics
  • Research will have to be priced seperately from execution following the implementation of MiFID
  • Investment banks are likely to use the transition period to implement contingency measures
  • Industry Report - Industry Key Buyers Chapter

    IBISWorld expects the two largest firms in the industry to have a combined market share of 25.5% in 2018-19. All other companies in the industry generate less than 5% of revenue, which indicates a low level of concentration. The industry is somewhat stratified by firm and client size, particularly on the institutional client side. Concentration is higher in some areas. The major investment banks, or bulge-bracket banks, tend to cater to the largest clients and dominate activity such as large-cap underwriting, mergers and acquisitions, complex products and large institutional brokerage. Mid-tier, or middle-market banks, tend to cater to mid-cap institutions and offer a narrower range of services...purchase to read more.

    Additional Insights for the Investment Banking & Securities Brokerage Industry

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

  • Access to highly skilled workforce
  • Having a good reputation
  • Ability to quickly adopt new technology
  • IBISWorld analysts also discuss how external factors such as FTSE 100 and Official bank rate in the Investment Banking & Securities Brokerage industry impact industry performance..

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    What's in this report

    What is the Investment Banking & Securities Brokerage Industry?

    Investment banks and securities brokers act as intermediaries between those wishing to raise capital (the sell side) and those able to provide it (the buy side). They also facilitate secondary securities trading. Services to the sell side include underwriting capital raisings and advising on mergers and acquisitions. On the buy side, services include research and trading. Investment banks also undertake proprietary trading on their own account.

    Industry Products
  • FICC trading
  • Equities trading
  • Underwriting
  • Financial advisory services
  • Industry Activities
  • Underwriting, advising on and assisting capital raising
  • Brokering securities and market-making
  • Advising on transactions, including mergers, acquisitions and asset sales
  • Proprietary trading
  • Researching investments
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • FTSE 100
  • Official bank rate
  • Mergers and acquisitions involving UK companies
  • House price index
  • World price of crude oil

  • Current Performance
  • EU referendum
  • Significant change
  • Regulatory conditions
  • Feeling MiFID
  • Acquisition activity
  • Harsh penalties
  • Chart: Revenue Growth

  • Industry Outlook
  • Single market
  • Exit strategy
  • Confident markets
  • Banking reform
  • Table: Investment Banking & Securities Brokerage Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Manufacturing
  • Financial and Insurance Activities
  • Reinsurance
  • Fund Management Activities

  • Key Selling Industries
  • Accounting & Auditing
  • Legal Activities

  • Products & Services
  • FICC trading
  • Equities trading
  • Underwriting
  • Financial advisory services
  • Chart: Investment Banking & Securities Brokerage Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Financial sector
  • Non-financial clients
  • Government clients
  • Retail clients
  • Chart: Major Market Segmentation for the Investment Banking & Securities Brokerage Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Rent and depreciation
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Investment Banking & Securities Brokerage

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

  • Industry Globalization
    Barclays plc, Goldman Sachs Group Holdings (UK) Limited,
  • Table: Barclays plc - financial performance
  • Table: Goldman Sachs Group Holdings (UK) Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Investment Banking & Securities Brokerage 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 Brokerage Industry
  • 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
    Ficc Trading
  • Trading in fixed income products, commodities and currencies. An ancillary service offered by investment banks.
  • Initial Public Offering (Ipo)
  • The first time a company sells its stock to the general public to raise money.
  • London Interbank Offered Rate (Libor)
  • The average interbank interest rate offered by the world's most creditworthy banks.
  • Mid-Cap
  • A term used to describe companies that have medium-size market capitalisations. Market capitalisation is calculated by multiplying the number of outstanding shares by the current stock price.
  • Residential Mortgage-Backed Securities (Rmbs)
  • Securities that yield cash payments from homeowners paying off their mortgages.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Investment Banking & Securities Brokerage market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    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 Brokerage:
    • 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 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 Brokerage 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 Brokerage, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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