Region:Asia
Author(s):Rituraj Shekhar, Harsh Mittal
Product Code:KR853
The report titled “Philippines Financial Brokerage Market Outlook to 2023 – By Equity on Basis of Transaction Value, By Transaction Mode (Online & Offline), By Basis of Time of Delivery (Intraday & Delivery Based), By Type of Investor (Domestic & FII)” provides a comprehensive analysis on the financial brokerage market. The report covers various aspects including introduction on financial brokerage market, issues and challenges, trends and developments, investor profile, SWOT analysis, competitive landscape and government regulations. The report also covers market ecosystem, economic analysis of Philippines and comparison with other Emerging economies of South-Asia, competitive landscape including company profiles and cross-comparison among market players on key operational, customer base and financial parameters, growth drivers, recent developments, issues and challenges, decision making criteria for customers while choosing a brokerage firm and snapshots on Investor profile in Philippines. The report concludes with a snapshot on Introduction of Derivatives segment in brokerage market, market projections and analyst recommendations including success story of Zerodha India Financial Brokerage Market highlighting the key strategies for entering and remaining profitable in the highly fragmented market, highlighting the major opportunities and cautions.
The Philippines financial market is currently one of the most promising financial markets in South-Asia with very few financial products offered for trading at present but will increase in a few years. Trading activities in Philippines is highly regulated Due to very low trading volume & relatively fewer trading accounts; most of the brokerage firms provide brokerage services at the lowest cost prescribed by the SEC. The players currently charge brokerage fees for equity trading and plan to expand financial services towards asset management, mutual funds, wealth management, algorithmic trading, top picks and other services that can lure the customers. The industry grew at a negative CAGR during this period. The overall revenue in the financial brokerage industry witnessed a rising trend on account of a reduction in simplification of tax structure for trading, increasing investor’s confidence & political stability in Philippines in last year.
By Type of Trading Activity: In the financial brokerage market, equity segment has dominated the overall market in terms of transaction volume throughout FY’2014-FY’2018 which was supplemented by higher liquidity in equity, issuance of bonus shares in few instances thereby justifying the considerable share of equity in the overall market. Commodities’ trading was suspended by SEC back in 1990s and has not been started yet. PSE is in initial phase to restart the Commodities & Derivatives Exchange and is expected to start the segment very soon. Due to absence of Commodities & Future exchange, trading in other instruments have not been prevalent yet. Beginning of trading in this segment will open added revenue stream for the brokerage firms.
By Mode of Trading: In the financial brokerage market, trades are placed by the investors through traditional mode that is through broker’s assistance or through online mode where investors place orders online by a trading platform.
The Philippines Financial Brokerage market is fragmented in nature. UBS Securities is the market leader and has the highest market share in the Financial Brokerage market in Philippines on the basis of projected equity trading volume in FY’2019. This was followed by CLSA, Credit Suisse, COL Financial, Deutsche Regis Partners, Maybank ATR Kim, Macquarie Capital and others. These market players compete in the brokerage market in Philippines on the basis of commissions charged, quality of supplementary services and technology and reputation.
The total revenue from Philippines Financial brokerage Industry is expected to rise at a positive CAGR during the period FY’2019 - FY’2023E. This is mainly supported by the projected increase in investor education, government’s initiative towards setting up commodities exchange & stable macroeconomic factors’ contribution towards the overall revenue is expected to rise at a positive CAGR during the same period driven by rise in financial inclusion of the overall population as technology will be leveraged to expand the area of operations. Moreover, improvements in technology will lead to reduction in operational costs, the benefit of which can be passed on to the consumers as brokerage firms compete to stay relevant in the market. Foreign firms are bringing developed tech from their operations in developed countries to Philippines to provide better service to Filipino investors.
By Type of Trading Activity
By Entity
Companies Covered:
2.1. Market Definitions
2.2. Abbreviations
2.3. Consolidated Research Approach
2.4. Market Sizing – Overall Financial Brokerage Market
2.5. Variables (Dependent and Independent)
2.6. Multi Factor Based Sensitivity Model
2.7. Limitations
2.8. Final Conclusion
5.1. Historical Overview
5.2. Present Scenario
6.1. Educational Programs For Stockbrokers
6.2. Educational Programs For Investors
6.3. Process & Requirements to open a Brokerage & Trading account in Philippines
7.1. By Revenue From Brokerage, FY’2014-FY’2018
8.1. By Equity Market, FY'2014-FY'2018
8.2. By Equity on the Basis of Transaction Volume, FY'2013-FY’2018
8.3. By Revenue on the Basis of Transaction Mode (Online and Offline), FY’2018
8.4. By Revenue on the Basis of Time of Delivery (Intra Day and Delivery Based), FY’2018
8.5. By Domestic & FIIs Transactions in the Equity Market, FY’2019(P)
8.6. Investor Profile, FY’2018
13.1. Role of Capital Market Integrity Corporation (CMIC)
13.2. Process & Requirements to Start Broking Firm in Philippines
13.2.1. Definition of a Broker and a Dealer
13.2.2. Registration of Salesmen and Associated Persons of Brokers Dealers
13.2.3. Margin & Credit Requirement For a Broker Dealer
13.3. Tax Considerations for Market Players in the Sector
13.4. Costs Related to Trading
14.1. Competition Scenario (Competition stage, Company Position and Competing Parameters), 2018
14.2.Strengths & Weaknesses of Major Domestic Players in Philippines Financial Brokerage market
14.3. Company Profile of Major Players in Philippines Financial Brokerage Market
14.3.1. COL Financial
14.3.2. UBS Securities
14.3.3. Maybank ATR Kim
14.3.4. Macquarie Capital
14.3.5. Deutsche Regis Partners
14.3.6. JP Morgan Securities
14.3.7. Credit Suisse
15.1. Future Outlook and Projections, FY’2019-FY’2023
15.2. Future Growth Drivers
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