The WFE promotes regulated exchanges in four ways.
Quality: We promote market standards and reliable statistics.
Advocacy: We work with policy makers, regulators and government organizations for fair, transparent and efficient markets.
Networking: We bring together exchange experts to improve markets.
Development: We 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.
The WFE exchanges also play an active role in other networks of exchange expertise. Collectively, the WFE cooperates and supports these organizations.
The Arab Federation of Exchanges (AFE)
The Asian and Oceanian Stock Exchanges Federation (AOSEF)
The African Securities Exchanges Association (ASEA)
The Federation of Euro-Asian Stock Exchanges (FEAS)
The Federation of European Securities Exchanges (FESE)
Ibero-American Federation of Exchanges (FIAB)
South Asian Federation of Exchanges (SAFE)
Click to see the inter-exchange federation affairs for 2013