London, 1 March 2018 – The World Federation of Exchanges ("The WFE"), the global industry group for exchanges and CCPs, today published a joint report with global management consultancy McKinsey & Company's Banking & Securities Practice ("McKinsey"), on the fintech landscape in the Capital Markets Infrastructure (CMI) industry.

The report - entitled Fintech Decoded: Capturing the opportunity in capital markets infrastructure - looks at potential uses of new technologies across the sector, and areas likely to see the most innovation. It also outlines several strategic priorities that Capital Markets Infrastructure Providers (CMIP) - such as exchanges, CCPs, trading venues and securities depositories - can adopt to ensure they maximise the fintech opportunity in their markets.

The report is based on a survey of 46 members of the WFE, along with in-person interviews. It is supported by insights from McKinsey's Panorama fintech database, which catalogues fintech innovation globally.


The report concludes that it is vital for CMIPs to understand that fintech is a means to a strategic end, and not a strategy in itself. To that end, the report outlines three strategic priorities that CMIPs can adopt when considering how best to engage and work with fintech: protect your core business from erosion; modernise existing business practices and operations; and capture new business opportunities through fintech. By taking this focused, proactive approach, CMIPs can ensure they benefit from the changes in their industry that will be brought about by fintech.

Nandini Sukumar, CEO, The WFE commented: "This report seeks to demystify fintech in the context of the market infrastructure industry. Our aim is to help the industry better understand and identify the fintech opportunity - and provide practical solutions to capturing that opportunity. Our survey respondents are clear that they see positive changes to come in the future as a result of these various technologies and solutions."

Matthias Voelkel, McKinsey Partner and report co-author said: "It is essential to CMIPs to understand that fintech is a means to a strategic end, and not a strategy in itself. We have identified roughly 700 CMI-related fintechs at various stages of development and activity across the capital markets infrastructure value chain – incumbents, therefore, need to focus. An unfocused investment approach would be unmanageable and expensive."

Siobhan Cleary, Head of Research & Public Policy, The WFE commented: "While we are yet to see numerous large-scale use cases of fintech applications, data suggests that almost half of CMI-related fintechs are already working in AI, with more than a quarter engaged in DLT. We believe that over time, and through greater collaboration between fintech and market operators, we will start to see more tangible results."

Markus Röhrig, McKinsey Partner added: "Our research indicates that at most parts of the value chain, fintechs are potential partners to incumbent CMIPs rather than competitors. Particularly, within post-trade services, 90% of fintechs aim to provide services to incumbents, i.e. follow B2B models. On the contrary, at the front end of the value chain, in the 'access to capital' space, 82 percent of fintech business models directly address end customers, i.e., have a B2C focus, and therefore represent more of a threat to incumbents."

You can read the full report here.

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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 200 market infrastructure providers, including standalone CCPs that are not part of exchange groups. Of our members, 36.8% are in Asia-Pacific, 42.6% in EMEA and 20.6% in the Americas. WFE exchanges are home to nearly 45,000 listed companies, and the market capitalisation of these entities is over $82.5 trillion; around $81.8 trillion (EOB) in trading annually passes through the infrastructures WFE members safeguard (at end 2017).

The WFE FinTech Working Group was set up in 2017, and comprises senior technology and innovation representatives from nearly 20 WFE member exchanges and CCPs globally. The purpose of the FTWG is to enable members to develop comprehensive and coherent industry policy positions, to help shape regulatory thinking in this space, while also sharing information and best practice about new developments.

The WFE is the definitive source for exchange-traded statistics, and publishes over 350 market data indicators. Its 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, which is critical to enhancing investor and consumer confidence, and promoting economic growth.

For more information, please contact:

Anna Watson

Head of Communications, The World Federation of Exchanges

Email: This email address is being protected from spambots. You need JavaScript enabled to view it.

Phone: +44 20 7151 4137 / +44 7850 287 685

Twitter: @TheWFE