The World Federation of Exchanges (WFE), the global industry association for exchanges and clearing houses, has launched an Exchange Manifesto, codifying the unique and irreplaceable value exchange groups bring to society at large.
As new governments roll out their policies, the WFE’s Manifesto calls attention to the essential role that exchanges play in powering growth, financial inclusion, and even systemic stability. It sets out ten core contributions exchanges make to the countries they serve.
The 10 pillars of the Exchange Manifesto:
- Give people a path to financial security, via inflation-beating shares - They complete their offering with other products, such as fixed income.
- Help companies – new and old, large or SME – to prosper - Listing is a platform for future funding, hiring and marketing – not just cash today.
- Provide a clear signal on the health of a country - There is a mutually positive relationship with GDP increases.
- By supporting growth, contribute indirectly to tax revenues - Also, financial services, with exchanges at the core, is a value-added industry.
- Channel funds in the necessary scale to strategic sectors (defence, medicine) - Transitionals and new sectors benefit too (digitilisation, AI).
- Form the foundation for other financial markets - Exchanges have a ‘halo’ effect, that makes other financial markets more credible.
- Attract international investment - The profile and integrity of organised markets brings in foreign investors.
- Underpin insurance - Insurers need to invest in growth and value assets and manage asset-price risk.
- Promote public engagement - Access to capital markets and data reinforces social inclusion.
- Ensure system-wide soundness and resilience - This is funding and investment, without credit crunches.
The WFE is urging policymakers and regulators to defend and strengthen public markets by recognising their strengths, promoting their benefits, and incentivising their use.
Nandini Sukumar, CEO of the WFE, said, “With new governments taking office around the world, it is timely to recall the importance of these market infrastructures, together with derivatives exchanges, and how they serve the economy. With their vitality under threat, regulators must take heed of what is at stake if we allow public markets to continue to decline, we risk losing the most transparent, resilient, and inclusive form of finance we have.”
The full paper can be read here.
