Rising activity in mutual fund, hedge fund and other markets has bolstered industry demand
(PRWEB) October 19, 2014
The Financial Data Service Providers industry provides financial market data and related services, primarily real-time feeds, portfolio analytics, research, pricing and valuation data, to financial institutions, traders and investors. Industry vendors aggregate data and content from stock exchange feeds, broker and dealer desks and regulatory filings to distribute financial news and business information to the investment community. Over the five years to 2014, industry revenue is forecast to grow. IBISWorld Economic Analyst Leah Goddard says in the updated report, “since the financial crisis, the level of activity from financial institutions, including investment banks and securities brokerages, has remained depressed compared with prerecession heights, dampening revenue growth.” However, rising activity in mutual fund, hedge fund and other major markets has helped bolster industry demand, facilitating a recovery of revenue over the period.
Overall, recent trends toward the liberalization and globalization of world capital markets have resulted in greater mobility of investor capital, benefiting the financial sector through greater international participation in financial markets but also intensifying competition. These trends led to strong postrecession growth and helped propel industry revenue during the past five years. The industry also benefited from a tightened regulatory environment across the entire financial sector. As more regulations were passed, operators in the Financial Data Service Providers industry expanded their regulatory information offerings, boosting revenue in the process, including projected growth during 2014.
Over the next five years, growth in the Financial Data Service Providers industry is anticipated to accelerate as the economy improves, financial markets stabilize and investors, brokers and traders increase activity. “Additionally, due to significant restructuring efforts to improve efficiency after the recession, many corporations and large businesses will become more profitable,” Goddard says in the updated report. This will present greater opportunity for financial institutions and other businesses to purchase industry services. As a result, industry revenue is expected to over the five years to 2019.
For more information, visit IBISWorld’s Financial Data Service Providers in the US industry report page.
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IBISWorld industry Report Key Topics
This industry provides financial market data to financial firms, traders and investors. The data that vendors distribute comes from stock exchange feeds, broker and dealer desks and regulatory filings. This industry is a section of the larger business information reseller industry and only includes third-party resellers of information (i.e. vendors). It does not include exchanges or securities dealers and brokers.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
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Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.