DEFINITION of BanxQuote Money Markets Index
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.
The BanxQuote Money Markets Index enabled readers to compare money market funds issued by various financial institutions. It also provided consumers with data and tools to compare those data. The money market index compiled national, regional, state and local compendiums of money market rates offered by representative lending institutions. Rates were gathered from commercial banks and savings and loan institutions, as well as local certificates of deposit (CDs).
BREAKING DOWN BanxQuote Money Markets Index
The BanxQuotes Money Market Index, and information aggregators which have succeeded it, offer a valuable service to consumers by comparing local and national money market and CD rates. It provided benchmarks for both lenders and borrowers alike, and its rates were often quoted in financial media publications.
Today, there are many tools available for prospective purchasers of money market funds to find information on money market funds. Websites like Nerdwallet and Bankrate have money market comparison tools that allow consumers to compare money market rates for a given minimum investment. They link to third-party banks and financial institutions, where prospective customers can then make an investment.
For many years, BanxQuotes offered many different financial metrics which were widely quoted in the media, including the Wall Street Journal, the New York Times, the Chicago Tribune, and the Washington Post. Its data was also available to professional traders through the Bloomberg Terminal. BanxQuote and its parent company BanxCorp were pioneers of disseminating financial information on the internet, and was active in convening public discussions of topics related to the financial services industry and new communications technology. In 1995, for instance, BanxQuotes hosted the BanxQuote Multimedia Banking Forum in New York City.
Money Market Index Funds
Investors typically invest in money market mutual funds directly with a bank or through a brokerage account. Money market funds are popular places to park money that you don’t want to invest elsewhere at a given time. For instance, if you are a day trader, you may want to sell your investments and put the money into into a money market mutual fund, if you think that the market is headed for turbulence. Money market funds are a good place to store money in times of trouble, because the assets underlying money market funds are very safe securities like U.S. government debt.