NO 251 – JANUARY 2014

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WFE Focus
NEW OFFICE, NEW MISSION
Hüseyİn Erkan
Chief Operating Officer,
WFE

our new mission is: “Being the foremost advocate of the exchange industry to effectively influence policy and promote a fair, transparent and secure model for resilient capital markets by setting standards and support emerging markets development.”

Dear Colleagues,

I would like to extend my best wishes to all of you for the New Year from our new office in London. We have indeed completed our move to London from Paris, where WFE was established in 1961 and where it has been operating ever since.

The exchange industry has experienced a major transformation since the inception of WFE. Changing from single mutualized national exchanges to demutualized structures with heavy competition, from mostly single asset class exchanges to multi asset class global exchanges covering many continents. However, the most important functions of exchanges have remained the same. The exchanges continue to provide a capital raising function to channel the desperately needed capital to companies that need it for expansion and facilitate the introduction and the trading of products to mitigate risk. The exchanges successfully continue to carry out their responsibilities for efficient price discovery, fair trading rules and equal access to all their members, surveillance for any market abuse and full transparency.

WFE Office has shrunk from a team of 9 people to 3 temporarily during the move to London to start fresh with new responsibilities and a new mission. Our recruitment of new staff will have to be fast and at the same time appropriate to our new mission which is;

“Being the foremost advocate of the exchange industry to effectively influence policy and promote a fair, transparent and secure model for resilient capital markets by setting standards and support emerging markets development.”

I would like to thank my colleagues in Paris, Peter Clifford, Romain Devai, Sibel Yilmaz, Lorenzo Gallai, Christine Garnier and Francine Gallet for their great work and loyalty for so many years. I would also like to thank my colleagues Antoinette Di Massa and Grégoire Naacke for joining me in London to continue the mission of WFE.

This is an important issue of our Focus monthly publication as it is the first issue by the World Federation of Exchanges Ltd. from London headquarters. We have tried to keep the same content for the time being but have the intention to improve it with your suggestions in the near future.

The new WFE London office is located in the heart of the City. We are in close proximity to a number of international financial institutions, including the offices of many of our member exchanges and the financial media. We intend to exploit this advantage in the process of transforming the new WFE into a more outward looking organization, representing the interests of its member exchanges globally.

As in previous years, this first Focus issue of the year is presenting the results of the annual WFE statistics on global markets. We take this opportunity to warmly thank all the members who provide their statistics in the WFE database and that allow this database to be so rich and appreciated by external users. A new query tool was recently launched on WFE website allowing users to retrieve data since 1975 and including up to 300 different indicators. The first statistics on the numbers of queries made through this new query tool show that, on average, more than 150 queries are made per day. Those figures highlight the importance of WFE statistics for members, regulators, academics, journalists and all the others professional actors of the financial Industry.

The 2013 annual statistics presented in this Focus issue are providing a much more positive message for our Industry than the previous year. Indeed, the global market capitalization continued to increase significantly by 17.4% compared to 15.1% in the previous year. Investment flows activity recovered after two years of significant decrease with an increase of 34% more funds raised by new IPOs compared to 2012. The overall number of derivatives traded on-exchange also increased by a 6.4% in 2013. WFE Market Highlights for 2013 and the full report are available on our website for further details.

We look forward to seeing you all during your visits to the capital of the financial markets of Europe. Please send your suggestions about how we can improve our traditional monthly magazine Focus.