Member Exchanges

Membership Criteria

Preamble

October 2007, WFE reviewed its membership criteria, it establishes the initial and ongoing criteria for membership of the World Federation of Exchanges (WFE).

Members of WFE operate public capital markets, which are critical components of national economies. For the exchange industry to perform its macroeconomic role, it must meet the high standards set by the market’s commercial needs and adhere to the best practices and standards set by local and global authorities competent in the financial services industry. 

The ways of meeting WFE membership criteria vary across jurisdictions. Local issues count. Often other companies or government authorities are the parties responsible for certain of the exchange value-chain activities outlined below. Some WFE members have extensive self-regulatory obligations as part of their business mandate, and others rather little; but membership runs a broad spectrum of self-regulatory organization (SRO) functions. The WFE member must be able to explain how the local mix of competent actors comes together in its jurisdiction to provide for a well-run marketplace.

Membership of WFE is open to regulated exchanges which have been vetted according to these criteria.  

Principles

The members of the Federation work to provide orderly market operations that treat investors fairly, are transparent in their processes, and assure clear, pertinent and accessible information from issuers.

Members strive to improve their work on :

  • Investor and issuer focus
  • Safety of financial assets    
  • Clarity of offerings for channeling savings into investments
  • Transparency of the market transaction chain
  • Systems that maintain the integrity of the market for price discovery
  •  Fair treatment for each category of participants
  • Enforcement of listing requirements and trading rules
  • Fair processes for definitive and timely settlement of disputes

Criteria

The distinct roles played by WFE members in the capital markets establish a formal environment for the trading, clearing and settlement of securities and other investment products. Most often, exchanges are crucial private sector actors in the regulation or oversight of those activities.

WFE members meet the relevant criteria set out below at the time of their induction, and are subject to self-assessment reviews when requested by the Federation’s Board of Directors. The Board may formulate a policy for corrective action commensurate with the degree of non-compliance.

WFE generally considers that the criteria are being met when the business needs of market participants are satisfied, as this would indicate that a proper market is being operated.

 

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