The World Federation of Exchanges (WFE) has sounded the alarm over the weakening state of public markets, issuing an open letter to global policymakers, regulators, investors, and market participants. The letter, titled “Revitalising Public Markets: A Global Imperative for Growth”, highlights a steep decline in Initial Public Offerings (IPOs), marking the lowest global levels in five years, particularly in Europe, the Middle East and Africa (EMEA), and Asia-Pacific (APAC).
While the Americas—especially the United States, continue to demonstrate resilience, the WFE warned that overall global public market health is deteriorating. The federation described the trend as symptomatic of growing complacency and structural imbalances, driven by the rising dominance of private capital, alternative assets, and reduced liquidity in many markets.
“The decline is not just a blip on the radar—it’s a clear signal of the weakening role of public markets in driving innovation, creating jobs, and enabling equitable access to wealth,” said Nandini Sukumar, CEO of the WFE.
A Global Wake-Up Call
The WFE’s open letter frames the downturn in IPO activity as a threat to inclusive economic growth. The federation argued that when companies remain private for longer or avoid public markets altogether, it reduces public access to wealth creation and diminishes market transparency.
“Public exchanges are the foundation of financial security for individuals and economic development for nations,” the letter stated. “The weakening of public markets undermines trust, access to opportunity, and long-term prosperity.”
To counter this trend, the WFE announced the launch of a multi-year campaign aimed at restoring the vitality of public markets. The initiative will begin with a focus on understanding and reversing the IPO drought through research, cross-market collaboration, and policy reform.
Five Focus Areas for Reform
The WFE outlined five key areas of focus for revitalising global public markets:
- Bridging the Public-Private Divide: Encouraging cooperation between public and private markets to create a more inclusive capital ecosystem.
- IPO-Friendly Policy Reform: Advocating regulatory, fiscal, and procedural incentives to attract more listings, particularly from underperforming regions.
- Addressing Market Fragmentation: Strengthening secondary markets through technological innovation and broader access.
- Promoting a Risk-Aware Investment Culture: Enhancing investor literacy, transparency, and the use of risk management tools to support long-term growth.
- Restoring Investor Confidence: Launching global campaigns to reposition public markets as trustworthy, efficient, and value-generating for both investors and issuers.
Unified Industry Response
The open letter was co-signed by senior executives of leading exchanges including Nasdaq, SGX Group, TMX Group, B3 (Brasil Bolsa Balcão), Deutsche Börse, HKEX, and the Saudi Tadawul Group, among others.
“Our members are committed to leading this revitalisation effort,” said Sukumar. “This is not just desirable, it’s essential.”
About the World Federation of Exchanges
Founded in 1961, the WFE is the global association for exchanges and clearing houses, representing over 250 market infrastructure providers. With more than 49,000 listed companies and a combined market capitalisation of $116.58 trillion, WFE members play a central role in global capital formation. Its data platform, research publications, and policy advocacy aim to strengthen fair, transparent, and efficient markets.
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