Industry Analysis & Industry Trends
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 is expected to expand steadily over the five years through 2016-17. After the financial crisis the industry quickly rebounded as unstable conditions drove up both trading volumes and margins. However, some operators were severely affected by the financial crisis and were ill positioned to profit from the market conditions that followed. IBISWorld expects industry revenue to grow at a compound annual rate of 2.6% to £47.8 billion over the five years through 2016-17... purchase to read more
Industry Report - Industry Products Chapter
The industries activities can be split into three main categories: equity trading, FICC trading and core investment banking activities. Core investment banking activities are made up of financial advisory services and underwriting. Equities and FICC trading consist of trades executed on a client's behalf (brokering), principal dealing (market making) and proprietary trading on the firm's own behalf. Brokering produces brokerage fees, which tend to be generated on a per-trade basis. Market making generates income through the bid-ask spread and proprietary trading generates income or losses through speculation in financial markets.
Many firms have teams dedicated to trading their own money in a speculative manner in equities, FICC and derivatives. The.. purchase to read more