WFE Launches Global Manifesto To Boost Public Markets

The World Federation of Exchanges (WFE), the global industry association for exchanges and clearing houses, has launched a new Exchange Manifesto aimed at codifying the unique and irreplaceable role exchanges play in driving economic growth, financial inclusion, and systemic stability.

Nigeria is a member of the federation.

The initiative comes as new governments around the world roll out economic policies and as global capital markets face mounting pressures from declining participation in public markets.

The WFE said the manifesto underscores ten core contributions that exchanges provide to societies and economies.

According to the federation, exchanges give individuals a path to financial security by offering access to inflation-beating shares and complementary products such as fixed income securities.

They also enable companies of all sizes, from established corporations to small and medium enterprises, to raise capital, expand operations, and create jobs.

Exchanges serve as a barometer of economic health, reflecting a positive correlation with gross domestic product growth while indirectly boosting tax revenues through the economic expansion they stimulate.

The manifesto also highlights how exchanges channel funds at scale into strategic sectors such as defence, medicine, digitalisation, and artificial intelligence.

By providing credibility and transparency, they form the foundation for other financial markets and attract international investment.

Exchanges further support the insurance industry by helping insurers invest in growth assets and manage price risks, while promoting social inclusion by ensuring public engagement with capital markets and data accessibility.

Above all, they provide resilience, ensuring system-wide soundness and stability without the distortions that come with credit crunches.

Chief Executive Officer of the WFE, Nandini Sukumar stressed the urgency of the manifesto in light of today’s political and economic climate.

“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,” she said.

The WFE urged policymakers and regulators to defend and strengthen public markets by recognising their systemic importance, promoting their benefits, and incentivising greater participation.

Source: TheWhistler | Read Full Story…