What Is the Future of Financial Exchanges? (Video)

“While exchanges have a responsibility to provide fair and equal access to all market participants without violating public interest responsibility, they are dependent on a responsible financial ecosystem of lawyers, consultants, advisers, accountants, and managers of listed companies to avoid fraud by listed companies,” TMX Group CEO Thomas Kloet said recently at a program on “The Future of Exchanges” co-sponsored by the Hong Kong Society of Financial Analysts, Asia Securities Industry & Financial Markets Association, and CFA Institute.

Exchanges, in Kloet’s opinion, have gone through a marked revolution rather than an evolution. Referencing technological advancements in an era in which commerce and capital are both global and mobile, he urged regulators to work together to ease cross-border trading. The global derivatives volume offers strong evidence of the free flow of capital across international jurisdictions. While some international mergers of exchanges have proven difficult due to the lack of synergies between partners, there will be continued demand for complementary businesses to join forces as long as they add shareholder value.