An Open Letter from the World Federation of Exchanges

An Open Letter from the World Federation of Exchanges

Revitalising Public Markets: A Global Imperative for Growth

17 July 2025

To Policymakers, Regulators, Market Participants, and the Global Investment Community,

Public markets are at a critical juncture.

The latest data from the World Federation of Exchanges confirms a troubling reality: the number of initial public offerings (IPOs) globally has fallen to its lowest level in five years. This is especially stark in the EMEA and APAC regions, even as the Americas - and notably the United States - continue to demonstrate the vitality and power of public markets, as long as they are effectively supported and embraced.

This decline is not just a statistical anomaly - it is symptomatic of a broader complacency about the vitality and durability of public markets. The rise of private capital and alternative asset classes such as cryptocurrencies, coupled with declining liquidity and valuations across many markets, including developed markets, has led to a worrying dislocation. Companies are staying private longer or bypassing public markets entirely. Investors are looking elsewhere. And, as a result, the fundamental role of public markets in supporting innovation, job creation, and equitable wealth distribution is under threat. All markets, especially private markets, rely on public markets.

We write today not simply to raise the alarm, but to sound a call to action.

Public exchanges are foundational to economic prosperity, giving people a path to financial security, via participation in shares of companies that drive economic growth or innovation. They enable permanent capital formation, transparency, protect investors, and create access to opportunity. From small domestic bourses to the largest global exchange groups, our members offer an inclusive pathway for businesses to raise capital to support future growth, to diversify its shareholder base, for individuals to invest and participate in wealth creation, and for societies to thrive. The health of the public exchange provides a clear signal on the financial health of a country.

The decline in public listings and trading activity should concern everyone who cares about inclusive economic growth, even for participants of private markets.      

We believe passionately that revitalising public markets is not just desirable - it is essential.

Our members pledge to lead this global revitalisation.

We will launch a multi-year campaign to investigate and address the structural causes of public market decline, beginning with an urgent focus on the IPO drought. This campaign will be underpinned by deep research, cross-market collaboration, and policy engagement. Our goal is to restore vitality to public markets worldwide.

We propose a series of areas for immediate exploration:

• Public-Private Ecosystem Alignment: Rather than viewing private and public markets as adversaries, we will promote an ecosystem approach, fostering synergies and joint upward mobility.
• Policy Incentives for IPOs: We will explore regulatory, fiscal, and procedural reforms to make going public more attractive for businesses of all sizes, particularly in underperforming regions. 
• Reducing Market Fragmentation: Healthy primary markets require empowered secondary markets, such that the powerful technology that exchanges use benefits the widest possible range of market participants.
• Risk and reward culture: We will promote a model that embraces calibrated risk taking, in the interests of long-term growth and household security, building on literacy programmes, the availability of independent research, the use of derivatives as well as securities, central clearing, and the high-quality data that only exchanges can provide.
• Championing Trust Campaigns: We will investigate ways to build the reputation of public markets as safe, transparent, and value-generating arenas for investment and capital formation, and invest in the promotion of them.

This is a global mission that requires global cooperation. We invite our member exchanges, policymakers, regulators, asset managers, and issuers to join us in shaping the future of public markets.

Our ambition is simple yet profound: to ensure that public markets remain a dynamic, inclusive engine of global economic progress for generations to come.

Now is the time for bold leadership, shared vision, and unwavering commitment.

Let us rise to this challenge - together.

Sincerely,

Ms Nandini Sukumar, Chief Executive Officer, The World Federation of Exchanges

Mr Boon Chye Loh, Chairman, The WFE, Chief Executive Officer, SGX Group

Mr John McKenzie, Vice Chairman, The WFE, Chief Executive Officer, TMX Group Limited

Mr Bjørn Sibbern, Working Committee Chairman, The WFE, Chief Executive Officer, SIX Group

Mr Gilson Finkelsztain, Chief Executive Officer, B3 - Brasil Bolsa Balcão

Mr Greg Wojciechowski, President & Chief Executive Officer, Bermuda Stock Exchange

Mr Korkmaz Ergun, Chief Executive Officer, Borsa Istanbul

Mr Craig Donohue, Chief Executive Officer, Cboe Global Markets

Mr Kendal Vroman, Chief Transformation Officer, CME Group

Dr Thomas Book, Member of the Executive Board, Deutsche Börse AG

Mr Carlson Tong, Chairman, Hong Kong Exchanges & Clearing (HKEX)

Mr Hiromi Yamaji, Group Chief Executive Officer, Japan Exchange Group

Dr Leila Fourie, Group Chief Executive Officer, Johannesburg Stock Exchange

Mr Eun-Bo Jeong, Chairman & Chief Executive Officer, Korea Exchange

Ms Julie Becker, Chief Executive Officer, Luxembourg Stock Exchange

Mr Edward S. Knight, Executive Vice Chairman, Nasdaq

Mr Ashishkumar Chauhan, Managing Director & Chief Executive Officer, National Stock Exchange of India Ltd

Eng Khalid Al Hussan, Chief Executive Officer, Saudi Tadawul Group (STG)

Mr QIU Yong, Chairman, Shanghai Stock Exchange (SSE)

See here for the latest WFE Statistics, Research and White Papers.

For more information, please contact:

Cally Billimore                                     +44 7391 204 007

Communications Manager                  [email protected]

 

About the World Federation of Exchanges (WFE):

Established in 1961, the WFE is the global industry association for exchanges and clearing houses. Headquartered in London, it represents over 250 market infrastructure providers, including standalone CCPs that are not part of exchange groups. Of our members, 37% are in Asia-Pacific, 43% in EMEA and 20% in the Americas. WFE’s 87 member CCPs and clearing services collectively ensure that risk takers post some $1.1 trillion (equivalent) of resources to back their positions, in the form of initial margin and default fund requirements. WFE exchanges, together with other exchanges feeding into our database, are home to over 49,054 listed companies, and the market capitalisation of these entities is $116.58 trillion; around $155 trillion (EOB) in trading annually passes through WFE members (at end 2024).

The WFE is the definitive source for exchange-traded statistics and publishes over 350 market data indicators. Its free statistics database stretches back more than 40 years and provides information and insight into developments on global exchanges. The WFE works with standard-setters, policy makers, regulators and government organisations around the world to support and promote the development of fair, transparent, stable and efficient markets. The WFE shares regulatory authorities’ goals of ensuring the safety and soundness of the global financial system.

With extensive experience of developing and enforcing high standards of conduct, the WFE and its members support an orderly, secure, fair and transparent environment for investors; for companies that raise capital; and for all who deal with financial risk. We seek outcomes that maximise the common good, consumer confidence and economic growth. And we engage with policy makers and regulators in an open, collaborative way, reflecting the central, public role that exchanges and CCPs play in a globally integrated financial system.

Website: www.world-exchanges.org

Twitter: @TheWFE

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