What is The World Federation of Exchanges (WEF) & its Mission: WFE is the trade association of 60 publicly regulated stock, futures and options exchanges. WFE market operators are responsible for the functioning of key components in the financial world. WFE annual survey of global markets found that while the global market capitalization increased 15.1% in 2012 , the volume of all products traded on WFE member exchanges fell significantly. According to worldwide statistics compiled by the WFE, the value of Electronic Order Book (EOB) share trading According to the WFE figures, which are gathered from WFE member exchanges, the number of listed companies remained stable in 2012, while both ETFs and securities derivatives increased their listings. How to become a member? To be a member, exchanges must adhere to the WFE Membership Criteria. Candidates are selected following a peer review. Membership in WFE is considered by some governments and national associations of asset managers as a criteria for preferential investment policy and taxation for these markets. There are 2 Associates, 15 WFE Affiliates with separate professional relations, and 25 exchanges which are WFE Correspondents. Mission of WTF: The WFE promotes regulated exchanges in four ways. Quality: They promote market standards and reliable statistics. Advocacy: They work with policy makers, regulators and government organizations for fair, transparent and efficient markets. Networking: They bring together exchange experts to improve markets. Development: They help newer, smaller exchanges to meet WFE standards. The significance of exchanges The regulated exchange environment provides for transparent price discovery, with visibility of the bid and offer prices shown in the central order book. It also provides for certainty of outcome, as trades are processed through exchange-operated or closely related after-trade service providers, very often with central party clearinghouse guarantees. The transaction and counterparty risk is then transferred to the exchange or clearer. The robustness of this model has proven its worth by providing liquidity to users of capital markets, including on days when OTC and interbank market segments have seized up. Since August 2007, exchanges have remained the major providers of liquidity to the markets, along with central banks. WFE member exchanges are key national economic actors in their countries, with a few members now spanning several jurisdictions and time zones. Capital raising and secondary-market pricing remain the key function for the securities and securities options segments; standardized contracts for financial and raw materials products on futures markets provide essential pricing indicators for the world’s economy, going well beyond the individual corporation.
Posted on: Tue, 28 Oct 2014 07:29:00 +0000
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