Research

The WFE Research team conducts research into areas of relevance for its global membership base, either independently or in conjunction with partners.

Our research is intended to stimulate discussion on the key topics impacting market infrastructures; assist in informing the debate on those issues; and enhance the understanding of the economic and social role of exchanges and CCPs in the economies in which they operate. Our work takes the form of member surveys, briefing notes, and more detailed research reports. 

We have published reports and studies into the rapidly evolving exchange and CCP landscape covering a range of areas including: public policy, technology, SMEs, emerging markets, market structure and sustainability.

Editor's Pick

The effect of DLT settlement latency on market liquidity

Published: 22 May 2024
This paper investigates the causal relationship between Distributed Ledger Technology (DLT) settlement latency and market quality in the cryptocurrency domain. Utilizing the cryptocurrency market as a unique laboratory, we identify blockchain mining power as an instrumental variable for DLT settlement latency. Our analysis reveals that DLT settlement Latency significantly lowers liquidity and increases transaction costs. In addition, through the Huang and Stoll (1997) spread decomposition, we document that DLT settlement latency reduces the adverse selection costs and increases the inventory management costs faced by liquidity suppliers. Moreover, these effects are more pronounced in smaller trading venues and for the native cryptocurrency of the settlement blockchain. More broadly, this paper contributes novel evidence on the importance of settlement, and highlights the balance between decentralized, near-instantaneous settlement cycles offered by DLT and the potential adverse impacts on market quality.
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ESG, News, Regulation, Regulatory Affairs, Regulatory Affairs, SMEs, Sustainability, WFE News

WFE welcomes EFRAG’s ESRS requirements for Listed SMEs

Published: 28 May 2024
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ESG, News, News & Views, Research, Research, Research, Sustainability

The WFE 10th Annual Sustainability Survey

Published: 28 May 2024
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Research, Research, Technology

The effect of DLT settlement latency on market liquidity

Published: 22 May 2024
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General, Research

The impulsive approach to procyclicality

Published: 16 Apr 2024
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Research, Statistics

FY 2023 Market Highlights Report

Published: 08 Mar 2024
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Features, News, News & Views, Regulation, Regulatory Affairs, Regulatory Affairs, Sustainability, WFE News

Green Equity Principles & Guidance - Public call for comments

Published: 14 Sep 2023
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Features, News, News & Views, Research, Research, Research, WFE News

A review of crypto-trading infrastructure

Published: 05 Sep 2023
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Features, News, News & Views, Research, Research, Research, Sustainability, WFE News

The WFE’s 9th Sustainability Survey

Published: 12 Jun 2023
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General, News, News & Views, Research, Research, Research, WFE News

How confident are we of margin model procyclicality measurements?

Published: 18 May 2023
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General, Research, Research, Research

Retail trading: an analysis of current trends and drivers

Published: 20 Dec 2022
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News & Views, Research, WFE News

Centralising bond trading

Published: 20 Dec 2022
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News, News & Views, Research

Call for papers WFE Conference 2023

Published: 09 Nov 2022
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Research, Sustainability

The WFE’s 8th Sustainability Survey

Published: 12 Sep 2022
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News, News & Views, Research

WFE Exchanges Factsheets

Published: 14 Jul 2022
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News, News & Views, Research

Circuit breakers and market quality

Published: 26 May 2022
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Research, Sustainability

WFE's 7th Sustainability Survey 2021

Published: 14 Jul 2021
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News, News & Views, Research

Circuit breakers and other market safeguards

Published: 01 Apr 2021
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Research, Sustainability

The WFE’s 6th Annual Sustainability Survey

Published: 15 Jul 2020
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Research, Sustainability

WFE: Sustainability & Commodity Derivatives White Paper

Published: 20 Aug 2019
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Research, Sustainability

WFE Sustainability Survey April 2019

Published: 23 Apr 2019
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General, Research

The Future of Clearing

Published: 02 Apr 2019
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Sustainability

WFE Sustainability Principles

Published: 04 Oct 2018
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SMEs

An Overview of WFE SME markets

Published: 02 Oct 2018
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Sustainability

WFE ESG Guidance and Metrics June 2018

Published: 28 Jun 2018
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Sustainability

WFE ESG Guidance and Metrics Revised June 2018

Published: 27 Jun 2018
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Technology

Fintech Decoded

Published: 01 Mar 2018
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Emerging Markets

Enhancing retail participation in emerging markets

Published: 03 Aug 2017
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Sustainability

WFE Annual Sustainability Survey April 2017

Published: 06 Apr 2017
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SMEs

SME Financing and Equity Markets

Published: 22 Feb 2017
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Emerging Markets

Enhancing Liquidity in Emerging Market Exchanges

Published: 13 Oct 2016
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Sustainability

WFE Annual Sustainability Survey 2016

Published: 25 Jul 2016
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SMEs

WFE Report on SME Exchanges

Published: 22 Mar 2016
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Recommended Long Reads

Published by: The WFE Statistics Team

H1 2023 Market Highlights

Published: 24 Aug 2023
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Published by: The WFE Research Team

The effect of DLT settlement latency on market liquidity

Published: 22 May 2024
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The WFE welcomes work to encourage IPOs but warns of potential risks PISCES poses to market integrity and investor protection

Published: 18 Apr 2024
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Published by: The WFE Research Team

FY 2023 Market Highlights Report

Published: 08 Mar 2024
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Our Research Team

Our Research team includes experts from the fields of public policy, economics, econometrics, statistics, and the exchange industry itself. Together they bring more than 30 years of experience to our business, delivering a growing body of research work to support the WFE’s mandate.

  • Dr. Pedro Gurrola-Perez

    Dr. Pedro Gurrola-Perez

    Head of Research
  • Dr. Kaitao Lin, CFA

    Dr. Kaitao Lin, CFA

    Senior Financial Economist
  • Dr. Ishak Demir

    Dr. Ishak Demir

    Economist
  • Dr. Ying Liu

    Dr. Ying Liu

    Economist