What Is the BanxQuote Money Markets Index?

The BanxQuote Money Markets Index was an index of money market funds, compiled by the financial information firm BanxQuote. BanxQuote exited the market in 2015, and the BanxQuote Money Markets Index is no longer published.

Key Takeaways

  • The BanxQuote Money Markets Index was a popular index of money market fund interest rates.
  • It is no longer in circulation, since BanxQuote ceased operations in 2015.
  • Today, similar services are available through providers such as NerdWallet and Bankrate.

How the BanxQuote Money Markets Index Works

The BanxQuote Money Markets Index was an information aggregation service that helped investors by quoting and comparing the rates offered on both local and national money market funds. Through the index, lenders and borrowers could benchmark their own products against the broader universe of money market products. The BanxQuote Money Markets Index was also regularly quoted by journalists in major publications such as The Wall Street Journal, The New York Times, the Chicago Tribune, and The Washington Post.

In addition to providing data on money market interest rates, the BanxQuote Money Markets Index also included tools that consumers could use to analyze and compare the data presented. Today, there are many similar tools available for prospective buyers and sellers of money market funds. Popular examples include NerdWallet and Bankrate, which provide real-time interest rate information as well as tools such as financial calculators.

Prior to exiting the market in 2015, BanxQuote—together with its parent company, BanxCorp—were pioneers in disseminating financial information over the Internet. In addition to making their data available through their website and through journalists, BanxQuote information was also available to professional traders through the Bloomberg Terminal. BanxCorp also played a role in convening public discussions of topics related to the financial services industry and new communications technology. In 1995, for instance, BanxQuote hosted the BanxQuote Money Markets & Depository Forum in New York City.

Real-World Example of the BanxQuote Money Markets Index

The main value proposition of the BanxQuote Money Markets Index was that it would save investors from the time-consuming task of manually comparing the interest rates and other terms offered by various financial institutions. Instead, the Index would aggregate money market rates from savings and loan companies, commercial banks, and other lenders throughout the United States, providing a single at-a-glance figure.

Although the BanxQuote Money Markets Index is no longer in operation, similar services continue to be offered by other web-based companies. Bankrate, for example, offers regular ratings and reviews for money market accounts as well as articles and other educational resources. Thanks to the growing popularity of online banking, it has also become easier for consumers to access money market rates directly from the websites of their financial institutions.