🌍 SME-Dedicated Exchanges: Unlocking Growth Potential
The latest report by the World Federation of Exchanges (WFE) highlights the growing global focus on Small and Medium-sized Enterprises (SMEs) through dedicated listing platforms. These initiatives aim to provide SMEs with affordable access to finance, but their success depends on regional market structures and regulatory support.
📈 Key Highlights:
Global Expansion: Two-thirds of exchanges now have SME-specific platforms with reduced fees, relaxed regulations, and lower issuance thresholds.
Emerging Markets Leading: In developing economies, SME listings have nearly doubled in a decade. East Asia and the Pacific saw a 13x growth in SME market cap, exceeding USD 2 trillion by 2022.
Challenges Persist: Limited liquidity, high volatility, and compliance burdens continue to deter SME participation. Attracting investors and maintaining control are also significant hurdles.
🔑 Recommendations for Success:
Education: Regulators and exchanges should demystify public listings and benefits for SMEs.
Regulatory Adaptations: Tailored policies and alternative ownership structures to address SME concerns.
Market Incentives: Reduced fees, enhanced research coverage, and investor education programs to boost engagement.
Building a robust financial ecosystem with aligned policies, investor readiness, and targeted support is critical for sustaining the growth of SME platforms. Learn more in the latest WFE report! #SMEs #FinancialMarkets #EmergingEconomies #WFE
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Congrats iGP on achieving this great milestone. We had fun opening the TSX. 👏🏽 #igp #igpalumni Innovation Governance Program