The WFE Warns Against Regulatory Erosion That Could Undermine UK Public Markets and Investor Protections

 

PRESS RELEASE

The WFE Warns Against Regulatory Erosion That Could Undermine UK Public Markets and Investor Protections

London, 9th June 2025 – The World Federation of Exchanges (WFE), the global association of exchanges and clearing houses, has submitted its response to HM Treasury’s consultation on asset management regulation, calling for a balanced approach that safeguards investor protections and supports the long-term health of public markets.

The UK has a well-established financial regulatory framework and a reputation as a global centre for finance, however, the WFE warns that the Treasury must be cautious not to bring in reforms that may unintentionally weaken investor protections or discourage companies from listing publicly - potentially damaging the very foundations of the financial ecosystem.

Public markets are the bedrock of the capital-raising system, providing price discovery, resilience in times of crisis, and accessible, long-term investment opportunities. Even private markets, in practice, rely on public ones in many ways (e.g. to provide exit vehicles for investments via IPOs and for transparent price discovery that helps inform valuations and trades). Meanwhile, private markets are an important pipeline to public markets and play a vital role in growing and scaling companies. 

Regulatory changes that shift the balance too far in favour of less regulated private markets could deepen existing challenges facing capital markets, including the declining number of new listings. For capital markets to prosper, it is important that regulation creates a level playing field for both private and public markets by ensuring adequate disclosure of material information, due diligence and investor protection across the system. 

Nandini Sukumar, CEO of the WFE, said, “The points we make in our response are valid the world over: policymakers must ensure that simplifying regulation does not come at the expense of transparency, accountability, and the robust protections investors have come to expect. Moreover, the growth of private markets is reshaping the investment landscape, and it’s crucial that regulators respond by ensuring that regulatory changes support transparency, resilience, and equitable access to capital across both private and public markets. It is also crucial for regulators to ensure that regulatory changes do not undermine public markets, which are key national strategic assets that benefit the entire capital ecosystem, including private markets.”

Read the full response 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 over 250 market infrastructure providers, 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. WFE’s 87 member CCPs and clearing services collectively ensure that risk takers post some $1.1 trillion (equivalent) of resources to back their positions, in the form of initial margin and default fund requirements. WFE exchanges, together with other exchanges feeding into our database, are home to over 49,054 listed companies, and the market capitalisation of these entities is $116.58 trillion; around $155 trillion (EOB) 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 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. 

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

X: @TheWFE

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