What Is the World Federation of Stock Exchanges (WFE)?
The World Federation of Exchanges, also called the World Federation of Stock Exchanges (WFE), is an international trade association that advocates for the safety and soundness of the world’s financial system and the interests of regulated securities exchanges worldwide.
Understanding the World Federation of Stock Exchanges (WFE)
London, the United Kingdom, is home to the World Federation of Exchanges (WFE). Founded in 1961, the WFE is a private organization and business association representing over 250 exchanges and clearinghouses.
The following global regions are home to members of the WFE:
Europe, Middle East, and Africa (EMEA): 43%; Asia-Pacific: 37%
Americas (20%):
As of 2021, there were around 59,400 listed businesses on WFE exchanges, and the total yearly trading volume that goes through WFE members was $162.04 trillion.
Among the member exchanges are the following:
- B3: Brazil, Australian Securities Exchange BME Bolsa Balcão Spanish-English Trade
- The Mexican Bank of Values
- CME Company
- Global Markets Cboe
- China Futures and Financial Exchange
- China Securities Clearing and Depository Corporation, Limited.
- AG Deutsche Börse
- The Hochiminh Stock Market
- Exchanges and Clearing in Hong Kong
- South Korean Trade
- Nasdaq London Stock Exchange Group
- India’s National Stock Exchange Limited
- Shanghai Exchange for Futures
- Shanghai Stock Market
- Shenzhen Exchange for Stock
- Singaporean Currency
The World Federation of Exchanges’ objectives
The World Federation of Exchanges seeks to be the preeminent worldwide trade association for businesses that enable the exchange of financial assets. The group’s principal objective is to promote sensible regulation that is harmonized internationally since the financial services sector is highly regulated and because national legislation might vary significantly.
Additionally, the WFE aims to provide value to its members by bringing important industry information to light and organizing get-togethers where participants may exchange knowledge and build relationships. To do this, the World Federation of Exchanges hosts several events yearly, one of which is the organization’s annual meeting and general assembly, hosted by one of its member organizations.
The World Federation of Exchanges’ advantages
The World Federation of Exchanges offers players in the financial markets various services. It releases around 350 market indicators and a broad range of information about financial markets.
Additionally, the WFE helps innovations and best practices increase in the financial services sector. It often hosts conferences, seminars, and discussions where players in the sector may talk about critical topics about the structure of the financial markets, such as cross-border regulation or high-frequency trading, a highly automated trading system.
In addition, the WFE releases a plethora of data, many of which are included in its annual data guide. The guide contains valuable information that market players find helpful, such as the total market capitalization of firms listed on different stock exchanges, the full value of bonds issued globally, or the total notional value of derivatives traded in specific markets.
Usually, the value of a derivative comes from the underlying security or asset, such as a stock. Additionally, it keeps a database on new stock issuances known as initial public offerings, or IPOs, conducted on member exchanges. The board of directors meets often to supervise the organization’s administration and is in charge of the WFE.
Conclusion
- The London-based World Federation of Exchanges represents over 250 distinct exchanges and clearinghouses.
- Additionally, the WEF helps innovations and best practices increase in the financial services sector.
- Fifty-nine thousand four hundred listed businesses operate on WFE exchanges, and as of 2021, $162.04 trillion worth of trade was done by WFE members.
