To policymakers, regulators, market participants, and the global investment community,
Public markets are at a critical juncture.
The latest data from the World Federation of Exchanges confirms a troubling reality: the number of initial public offerings (IPOs) globally has fallen to its lowest level in five years. This is especially stark in the EMEA and APAC regions, even as the Americas - and notably the United States - continue to demonstrate the vitality and power of public markets, as long as they are effectively supported and embraced.
This decline is not just a statistical anomaly - it is symptomatic of a broader complacency about the vitality and durability of public markets. The rise of private capital and alternative asset classes such as cryptocurrencies, coupled with declining liquidity and valuations across many markets, including developed markets, has led to a worrying dislocation. Companies are staying private longer or bypassing public markets entirely. Investors are looking elsewhere. And, as a result, the fundamental role of public markets in supporting innovation, job creation, and equitable wealth distribution is under threat. All markets, especially private markets, rely on public markets.
We write today not simply to raise the alarm, but to sound a call to action.
Public exchanges are foundational to economic prosperity, giving people a path to financial security, via participation in shares of companies that drive economic growth or innovation. They enable permanent capital formation, transparency, protect investors, and create access to opportunity. From small domestic bourses to the largest global exchange groups, our members offer an inclusive pathway for businesses to raise capital to support future growth, to diversify its shareholder base, for individuals to invest and participate in wealth creation, and for societies to thrive. The health of the public exchange provides a clear signal on the financial health of a country.
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The decline in public listings and trading activity should concern everyone who cares about inclusive economic growth, even for participants of private markets.
We believe passionately that revitalising public markets is not just desirable - it is essential.
Our members pledge to lead this global revitalisation.
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We will launch a multi-year campaign to investigate and address the structural causes of public market decline, beginning with an urgent focus on the IPO drought. This campaign will be underpinned by deep research, cross-market collaboration, and policy engagement. Our goal is to restore vitality to public markets worldwide.
We propose a series of areas for immediate exploration:
Public-Private Ecosystem Alignment: Rather than viewing private and public markets as adversaries, we will promote an ecosystem approach, fostering synergies and joint upward mobility.
Policy Incentives for IPOs: We will explore regulatory, fiscal, and procedural reforms to make going public more attractive for businesses of all sizes, particularly in underperforming regions.
Reducing Market Fragmentation: Healthy primary markets require empowered secondary markets, such that the powerful technology that exchanges use benefits the widest possible range of market participants.
Risk and reward culture: We will promote a model that embraces calibrated risk taking, in the interests of long-term growth and household security, building on literacy programmes, the availability of independent research, the use of derivatives as well as securities, central clearing, and the high-quality data that only exchanges can provide.
Championing Trust Campaigns: We will investigate ways to build the reputation of public markets as safe, transparent, and value-generating arenas for investment and capital formation, and invest in the promotion of them.
This is a global mission that requires global cooperation. We invite our member exchanges, policymakers, regulators, asset managers, and issuers to join us in shaping the future of public markets.
Our ambition is simple yet profound: to ensure that public markets remain a dynamic, inclusive engine of global economic progress for generations to come.
Now is the time for bold leadership, shared vision, and unwavering commitment.
Let us rise to this challenge - together.
Sincerely,
Nandini Sukumar, CEO, The World Federation of Exchanges
Boon Chye Loh, chairman, The WFE, CEO, SGX Group
John McKenzie, vice chairman, The WFE, CEO, TMX Group
Bjørn Sibbern, working committee chairman, The WFE, CEO, SIX Group
Gilson Finkelsztain, CEO, B3 - Brasil Bolsa Balcão
Greg Wojciechowski, president & CEO, Bermuda Stock Exchange
Korkmaz Ergun, CEO, Borsa Istanbul
Craig Donohue, CEO, Cboe Global Markets
Kendal Vroman, chief transformation officer, CME Group
Thomas Book, member of the executive board, Deutsche Börse AG
Carlson Tong, chairman, Hong Kong Exchanges & Clearing
Hiromi Yamaji, group CEO, Japan Exchange Group
Leila Fourie, group CEO, Johannesburg Stock Exchange
Eun-Bo Jeong, chairman & CEO, Korea Exchange
Julie Becker, CEO, Luxembourg Stock Exchange
Edward S. Knight, executive vice chairman, Nasdaq
Ashishkumar Chauhan, managing director & CEO, National Stock Exchange of India
Eng Khalid Al Hussan, CEO, Saudi Tadawul Group
Qiu Yong, chairman, Shanghai Stock Exchange
