Money Market Dealers in Australia - Market Research Report (2014-2029)
Melbourne, Australia
Last Updated: January 2024
ANZSIC K6229Revenue
$2.7bn
Past 5-Year Growth
Profit
$XXX.Xm
Employees
1,081
Businesses
97
Wages
$XXX.Xm
Money Market Dealers in Australia industry analysis
The Money Market Dealers industry’s performance has taken a hit in recent years. Overall turnover volume has plunged, thanks to the Term Funding Facility (TFF) introduced by the RBA in March 2020. The TFF provided authorised deposit-taking institutions (ADIs) with low-cost fixed-rate funding for up to three years. ADIs have been opting for longer term options over short-term debt securities because of this funding, which has dampened industry performance. Revenue is expected to collapse at an annualised 17.0% to $2.7 billion over the five years through 2023-24, and profit margins are also set to contract. This trend includes an estimated revenue increase of 5.4% in 2023-24, since demand is expected to gradually recover as funding from the TFF matures.
Trends and Insights
- The Term Funding Facility (TFF) has caused clients to invest more in longer term funding. Since the industry deals with short-term debt securities, revenue has dropped as a result.
- Repurchase agreements are generating less revenue. Repurchase agreements are short-term debt securities, which the recent Term Funding Facility has discouraged.
- Sydney and Melbourne are Australia’s financial hubs. A lot of large money market dealers locate themselves here to be close to key markets.
- Pricing is very important for money market dealers. Dealers operate on basis points, and when transactions can equate to millions of dollars, a single basis point makes a difference.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has declined at a CAGR of 17.0 % over the past five years, to reach an estimated $2.7bn in 2024.
Trends and Insights
Falling revenue has reflected poor economic conditions
- The industry trades in the short-term money market – dealers buy and sell short-term securities, like bank bills, certificates of deposit, corporate paper, government debt securities and repurchase agreements (repos). Dealers mostly deal in the wholesale market with other financial institutions, large corporations and government agencies.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Funding changes are set to encourage the industry’s recovery
- Deposits are a key source of funding for banks and comprise a large proportion of liabilities. Since APRA sets out stringent liquidity requirements, authorised deposit-taking institutions (ADIs)are still on track to favour long-term debt instruments and retail deposits in the coming years.
Biggest companies in the Money Market Dealers in Australia
| Company | Market Share (%)
2024 | Revenue ($m)
2024 |
|---|---|---|
NAB | 570.2 | |
Westpac | 410.5 | |
Macquarie | 252.2 |
To view the market share and analysis for all 5 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Repurchase agreements, Government securities and Bank and corporate debt. Repurchase agreements is the largest segment of the Money Market Dealers in Australia.
Trends and Insights
The RBA's Term Funding Facility has led to lower revenue from repurchase agreements
- Repurchase agreements (or repos) involve selling securities with an agreement that the seller buys it back in the future – often the next day – at a higher price. The difference between the sale price and repurchase price represents the interest on the security.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Financial Asset Investing in Australia
- National and Regional Commercial Banks in Australia
- Investment Banking and Securities Brokerage in Australia
Complementors
- Custody, Trustee and Stock Exchange Services in Australia
International industries
- Global Investment Banking & Brokerage
- Real Estate Loans & Collateralized Debt in the US
- Non-Banks and Other Financial Institutions in New Zealand
- Non-Depository Financing in the UK
- Securities Investment in China
Table of Contents
About this industry
Industry definition
Money market dealers primarily buy and sell short-term debt securities, like 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.
What's included in this industry?
Repurchase agreementsGovernment securitiesBank and corporate debtCompanies
NABWestpacMacquariePurchase this report to view all 5 major companies in this industry.
Related Terms
SEMI-GOVERNMENT PAPERCORPORATE PAPERCERTIFICATE OF DEPOSITREPOOPEN MARKET OPERATIONSIndustry Code
ANZSIC 6229 - Money Market Dealers in Australia
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
The Term Funding Facility (TFF) has caused clients to invest more in longer term funding. Since the industry deals with short-term debt securities, revenue has dropped as a r...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Repurchase agreements are generating less revenue. Repurchase agreements are short-term debt securities, which the recent Term Funding Facility has discouraged.
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Sydney and Melbourne are Australia’s financial hubs. A lot of large money market dealers locate themselves here to be close to key markets.
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Pricing is very important for money market dealers. Dealers operate on basis points, and when transactions can equate to millions of dollars, a single basis point makes a dif...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
NAB has been acquiring companies to strengthen its focus in the ANZ region. For example, it acquired 86 400 in 2021, and Citigroup Consumer Business in 2022.
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of NAB's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Westpac's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Macquarie's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for 2 additional companies
Detailed analysis
- Description and key data for NAB, and factors influencing its performance in the industry
- Description and key data for Westpac, and factors influencing its performance in the industry
- Description and key data for Macquarie, and factors influencing its performance in the industry
- Description, key data and performance trends for 2 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Elevated levels of equity capital raising and household savings can negatively impact money market dealers. Both factors reduce dependence on short-term borrowing, leading to...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Wages’ revenue share is on the rise thanks to a plunge in revenue. Employees also need to be increasingly skilled in specialisations like quantitative market analysis, which ...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Australia include:
- Australian Bureau of Statistics
- Australian Taxation Office
- Australian Securities & Investments Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Money Market Dealers industry in Australia in 2024?
The market size of the Money Market Dealers industry in Australia is $2.7bn in 2024.
How many businesses are there in the Money Market Dealers in Australia industry in 2024?
There are 97 businesses in the Money Market Dealers industry in Australia, which has grown at a CAGR of 3.7 % between 2019 and 2024.
Has the Money Market Dealers industry in Australia grown or declined over the past 5 years?
The market size of the Money Market Dealers industry in Australia has been declining at a CAGR of 17.0 % between 2019 and 2024.
What is the forecast growth of the Money Market Dealers industry in Australia over the next 5 years?
Over the next five years, the Money Market Dealers industry in Australia is expected to grow.
What are the biggest companies in the Money Market Dealers market in Australia?
The biggest companies operating in the Money Market Dealers market in Australia are NAB, Westpac and Macquarie
What does the Money Market Dealers in Australia include?
Repurchase agreements and Government securities are part of the Money Market Dealers industry.
Which companies have the highest market share in the Money Market Dealers in Australia?
The company holding the most market share in Australia is NAB.
How competitive is the Money Market Dealers industry in Australia?
The level of competition is high and increasing in the Money Market Dealers industry in Australia.
