London, 13 October 2016 – The World Federation of Exchanges ("WFE"), which represents more than 200 market infrastructure providers including exchanges and CCPs, today published a report into growing liquidity in emerging market exchanges, in collaboration with global management consulting firm Oliver Wyman.

The report, entitled Enhancing Liquidity in Emerging Market Exchanges, is designed to provide regulators and exchange operators in emerging markets with ideas around how to grow and enhance market liquidity - liquidity levers - and a potential framework for which of those levers may work best at which stage of market development. Many emerging markets suffer from low levels of liquidity, effectively placing a constraint on economic and market development. Liquidity is positively associated with broader market development, and often creates a virtuous circle, resulting in encouraging effects for the underlying economy.

The report identifies three key areas that exchanges and regulators can focus on to grow liquidity, with each area having a number of corresponding liquidity levers:

1. Promoting the development of a diverse investor base.Liquidity levers include:

2. Increasing the pool of securities and associated financial products. Liquidity levers include:

3. Investing in the creation of an enabling market environment. Liquidity levers include:

Through the use of relevant emerging market exchange case studies at varying stages of development (including the Philippines Stock Exchange, the Stock Exchange of Thailand, BM&FBOVESPA and the National Stock Exchange of India) - to highlight practical experience with these levers - the report outlines how each exchange has addressed and implemented some of the highlighted mechanisms. It also serves to show there is not a one-size-fits-all solution; the effectiveness of a lever will depend both on the dynamics of the particular market, and on how well it is implemented.

Nandini Sukumar, CEO, WFE, said: "We believe that exchanges, regulators and capital market participants in emerging markets can take action to grow liquidity, improve the efficiency of trading, and better service issuers and investors in their markets. By working together to create the requisite enabling market environment, the indirect benefits to emerging market economies could be significant."

Daniela Peterhoff, Partner, Global Head of Market Infrastructure, Oliver Wyman, said: "Promoting a diverse investor base, increasing the pool of securities and investing in an enabling market environment are the three key actions points we identified to grow liquidity."

The report was written in collaboration with Oliver Wyman, using its experience in a variety of markets, and WFE data, supported by interviews with, and case studies of, a number of WFE emerging market exchanges.

Click here to read Enhancing Liquidity in Emerging Market Exchanges in full.

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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.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.

WFE exchanges are home to nearly 45,000 listed companies.The WFE promotes the development of fair, efficient and transparent markets. It works with policy makers, regulators and standard-setters around the world to support the development of effective rules and standards for exchanges and market participants. For more information, please visit:

For more information, please contact:

Anna Watson

Head of Communications, World Federation of Exchanges

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Phone: +44 20 7151 4137