New WFE Research Finds M&A Accounts for Most Delistings, With Higher Market Liquidity Linked to Fewer Exits

 

PRESS RELEASE

New WFE Research Finds M&A Accounts for Most Delistings, With Higher Market Liquidity Linked to Fewer Exits

London, 9 November 2026 – The World Federation of Exchanges (WFE), the global industry association for exchanges and central counterparties (CCPs), today published new research showing that mergers and acquisitions (M&A) account for the majority of companies leaving public markets, and that exchanges with more liquid secondary markets tend to have lower delisting rates. The research also finds that changes in net listings are more closely tied to IPO activity than to delistings.

The research, Public Market Trend: A Global Analysis of Delisting Patterns, by Dr Ishak Demir, Dr Erfan Ghofrani and Dr Ying Liu, analyses listing and delisting activity across 60 exchanges in 55 jurisdictions between 2010 and 2024. It distinguishes between three exit routes: M&A, voluntary delistings, and involuntary delistings. On average, companies leaving via M&A tend to be larger and financially stronger, while involuntary delistings are more common among smaller and financially weaker companies.

Delisting activity has varied considerably over time, with M&A-related exits accounting for most of the changes in overall delisting activity. Involuntary delistings are fewer in number but more volatile, while voluntary delistings have remained relatively limited and stable.

The research also examines the relationship between market conditions and delisting activity. Higher secondary-market liquidity is associated with lower overall delisting rates, suggesting that more liquid markets may help companies remain publicly listed, while involuntary delistings are more prevalent when exchange liquidity is weaker. M&A-related delistings are also associated with stronger market returns and lower volatility. These relationships differ between advanced economies (AEs) and emerging market and developing economies (EMDEs). In AEs, M&A-related exits account for a larger share of delistings and exchange-level trading conditions are more closely linked to delisting rates. In EMDEs, voluntary and involuntary exits account for a larger share of delistings.

The paper also finds that changes in net listings are much more closely tied to changes in IPO activity than to changes in delistings. Stronger market returns and GDP growth are positively associated with net listing, while declines in the number of listed companies often reflect weaker listing conditions, particularly weaker IPO activity, rather than delisting waves alone.

Pedro Gurrola-Perez, Head of Research, WFE, said: “The data show that delisting activity is driven by very different forces. M&A accounts for the majority of exits and tends to involve larger, financially stronger companies, while involuntary delistings are more concentrated among smaller and weaker companies. The relationship between liquidity and delisting rates also highlights the importance of well-functioning secondary markets to the resilience of public listings.”

Nandini Sukumar, Chief Executive Officer, WFE, said: “Efforts to strengthen public markets should not focus only on reducing delistings. Our research shows that changes in net listings are more closely tied to IPO activity than to delistings, so the conditions that attract new listings are at least as important as those affecting companies’ decisions to remain listed.”

Read the paper in full: Public Market Trend: A Global Analysis of Delisting Patterns

For more information, please contact:

Oonagh Shiel
Communications Manager
Email: communications@world-exchanges.org

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 the providers of over 250 pieces of market infrastructure, including standalone CCPs that are not part of exchange groups. Of our members, 39% are in Asia Pacific, 41% in EMEA and 19% in the Americas region. The WFE’s 74 member CCPs and clearing services collectively ensure that risk takers post some USD 1.4 trillion (equivalent) of resources to back their positions, in the form of initial margin and default fund requirements. WFE exchanges are home to over 41,000 listed companies, and the market capitalization of these entities is over $137 trillion; around $198.5 trillion in trading annually passes through WFE members (at end-2025). 

The WFE is the definitive source for exchange-traded statistics and publishes over 350 market data indicators. Its free statistics database stretches back 50 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. 

With extensive experience of developing and enforcing high standards of conduct, the WFE and its members support an orderly, secure, fair and transparent environment for investors; for companies that raise capital; and for all who deal with financial risk. We seek outcomes that maximise the common good, consumer confidence and economic growth. And we engage with policymakers and regulators in an open, collaborative way, reflecting the central, public role that exchanges and CCPs play in a globally integrated financial system. If you have any further questions, or wish to follow-up on our contribution, the WFE remains at your disposal. ^[1] 

Website: www.world-exchanges.org

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^[1] Our EU Transparency Register number is 973382524675-69

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