The WFE awarded best paper by the ECMI for Research on IPO drivers

 

PRESS RELEASE

The WFE awarded best paper by the ECMI for Research on IPO drivers

London, 3 December 2025 - Researchers from The World Federation of Exchanges (“WFE”), the global industry group for exchange groups and CCPs, were awarded best paper for their new research, “Attracting New Listings: What Shapes IPO Activity Across Markets”, at the European Capital Markets Institute (ECMI) Annual Meeting.

The ECMI published a call for the submission of research papers related to capital markets and their functioning, and a committee of academics and international experts selected the WFE’s Research Paper for the prize and the opportunity to present the findings at the 2025 ECMI Annual Conference on 4 November 2025. The three WFE Research economists who co-authored the paper jointly accepted the prize and presented the paper in Brussels.

The paper offers the most comprehensive analysis to date of how exchange-level, macroeconomic, and regulatory factors shape IPO activity across 79 global stock exchanges from 2002 to 2024. The research found that market liquidity and GDP growth are the most consistent and robust factors impacting the volume of IPOs, while the higher the degree of financial development in a jurisdiction is associated with larger IPOs, particularly in emerging and developing markets. 

The authors developed the new WFE Listing Stringency Index (LSI) to capture the breadth of listing requirements across exchanges and assess how regulatory frameworks shape IPO markets.

Dr Ying Liu, Economist at the WFE and co-author of the paper, said, “Our research found that market liquidity and economic growth are the factors most consistently associated with higher levels of IPO activity. While having a developed financial system influences the size rather than the frequency of IPOs in a jurisdiction. We also found clear differences between markets: advanced economies are more sensitive to volatility and macroeconomic conditions, whilst emerging markets gain the most from improvements in liquidity, financial development, and overall economic expansion.”

Dr Ishak Demir, Economist at the WFE and co-author of the paper, said, “We were delighted to receive this award and be invited to present our paper at this prestigious international conference, in front of policymakers, academics and industry representatives. One of the main objectives of this research was to provide an evidence-based view of the factors that shape IPO activity across different market environments. By analysing two decades of data across a large set of global exchanges, we aim to offer policymakers, academics, and market practitioners a clearer understanding of the factors that shape IPO activity globally. We thank the ECMI and their committee of esteemed academics for recognising our work.”  

Dr Erfan Ghofrani, Economist at The WFE and co-author of the paper, said, “The Listing Stringency Index we developed as part of the research provides regulators with a useful tool, showing that easing overly strict listing requirements can increase market participation and capital raised, so long as transparency, market resilience, and governance standards remain intact.” 

Nandini Sukumar, Chief Executive Officer of the WFE, said, “I am incredibly proud of the team, led by Dr Pedro Gurrola-Perez, for this achievement. At the WFE we have built an exceptional team of academics who are producing cutting-edge research on the issues shaping our industry. We look forward to building on this work, using robust empirical evidence to inform industry dialogue and support policymaking that strengthens the functioning of global markets.”

Read the full Research Paper here.

For more information, please contact:

Cally Billimore

Communications Manager

[email protected]

+44 7391 204 007

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, 37% are in Asia Pacific, 43% in EMEA and 20% in the Americas region. The WFE’s 87 member CCPs and clearing services collectively ensure that risk takers post some USD 1.1 trillion (equivalent) of resources to back their positions, in the form of initial margin and default fund requirements. The exchanges covered by WFE data are home to over 49,054 listed companies, and the market capitalization of these entities is over USD116.58tr; around USD155tr in trading annually passes through WFE members (at end-2024).

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 policy makers and regulators in an open, collaborative way, reflecting the central, public role that exchanges and CCPs play in a globally integrated financial system.

Website: www.world-exchanges.org

Twitter: @TheWFE

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