Investment Banking Services Price Index (IBSPI)

Detailed information for 2015

The Investment Banking Services Price Index (IBSPI) measures annual price changes over time for investment banking services in Canada. Prices are derived as a weighted average of percentage commissions for new issues of equity and debt on Canadian financial markets. The primary purpose of this measure is to deflate the associated commodity output in the Canadian System of Macroeconomic Accounts (CSMA).

Data release - December 5, 2016

• Description
• Data sources and methodology
• Data accuracy

Description

This index is part of the Services Producer Price Index program (SPPI) at Statistics Canada.

The SPPI program develops and produces price indexes for a number of business service categories. This initiative fills an important data gap in the area of economic statistics and has resulted in a more comprehensive set of service price indexes. These indexes allow Statistics Canada to produce more accurate estimates of real-value added (Gross Domestic Product) and changes in productivity.

Statistical activity

These indexes are a part of the Services Producer Price Index program (SPPI) at Statistics Canada.

The SPPI program develops and produces price indexes for a wide range of business service categories. This initiative fills an important data gap in the area of economic statistics and has resulted in a more comprehensive set of service price indexes. It also allows Statistics Canada to produce more accurate estimates of real value added of the Gross Domestic Product and changes in productivity.

Reference period: The time period for which the IBSPI equals 100; currently this is the year 2010.

Collection period: Quarterly data are obtained 6 weeks after the end of each reference quarter. Data are published annually.

Subjects

• Prices and price indexes
• Service price indexes

Data sources and methodology

Target population

The target population for the IBSPI is Canadian investment banks. Investment banks fall under the North American Industry Classification System (NAICS) industry 52311 Investment Banking and Securities Dealing.

Instrument design

This methodology type does not apply to this statistical program.

Sampling

This methodology type does not apply to this statistical program.

Data sources

Data collection for this reference period: 2015-01-01 to 2016-02-13

Data are extracted from administrative files and derived from other Statistics Canada surveys and/or other sources.

The data is obtained from FP Infomart and from Statistics Canada's CANSIM database.

FP Infomart, a private sector data provider, tabulates the data set so that it conforms to the needs of the program. Microdata records are categorized into products, and product prices are derived as averages of percentage commissions.

The Implicit Price Index for Gross Fixed Capital Formation is produced by the Macroeconomic Accounts Branch (MEAB), and is obtained from CANSIM.

The data sources are combined to derive a price index for investment banking services.

Data from FP Infomart and the Implicit Price Index for Gross Fixed Capital Formation produced by MEAB, which is obtained from CANSIM, are combined to produce the index. The Gross Fixed Capital Formation Implicit Price Index is used as a deflator for proceeds.

Error detection

Error detection is conducted during post collection editing, through a system of data validity specifications. Failing records are reviewed for editing and corrected when necessary.

Imputation

Imputation for non-response or missing price data is calculated using the averages of designated cells.

Estimation

Estimates are a weighted average of annual price changes by product, which are chained together to form an index series. The IBSPI is a national index which uses reported underwriting commission revenues of investment banking service activity in the data set as its weighting source.

Quality evaluation

The quality of this index is maintained through the expertise of the few trained analysts assigned to it. They develop a thorough knowledge of the domain, which is supplemented by outside personal contacts with the data providers. Much time and effort is devoted to detecting and following up unusual fluctuations over time in the pricing patterns of services. Prior to dissemination, the price indexes are analyzed and historic trends reviewed.

Disclosure control

Statistics Canada is prohibited by law from releasing any information it collects that could identify any person, business, or organization, unless consent has been given by the respondent or as permitted by the Statistics Act. Various confidentiality rules are applied to all data that are released or published to prevent the publication or disclosure of any information deemed confidential. If necessary, data are suppressed to prevent direct or residual disclosure of identifiable data.

Individual price and weight data collected under the Statistics Act are confidential. Price data are converted to price indexes and data are released so that it is not possible to identify the suppliers of the raw price information.

Revisions and seasonal adjustment

Data for the most recent year are preliminary. The previous year of the series is subject to revision.

Data accuracy

The statistical accuracy of this index depends on price and weight data, which are obtained from an outside data source (FP Infomart). Through continuous monitoring of the data received and discussion with the supplier, an acceptable level of data quality and integrity is maintained for the purposes of producing the price index series.

Due to the fact that administrative data are used, confidence intervals are not currently estimated and statements about the statistical reliability cannot be made.

The Implicit Price Index for Gross Fixed Capital Formation produced by MEAB is obtained from CANSIM and used to adjust the index. Any revision of the Implicit Price Index for Gross Fixed Capital Formation which falls within the revision period of the IBSPI, would result in a revision to the IBSPI.