FOCUSDecember, 2015

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InsideFOCUS Interviews KRX’s Chairman Choi

FOCUS FEATURE: TWSE CEO – Staying at Sustainability’s Leading Edge

Borsa Istanbul Explains its New Repo FutureMLex interviews IOSCO’s David Wright

WFE Market Insight & AnalysisExchange News Highlights

FOCUS December 2015 | Page 2

CONTENTS

3. Introduction

INTERVIEW 4. Interview with Kyungsoo Choi,

Korea Exchange Chairman & CEO

EXCHANGE HEADLINES 8. Asia 8. EMEA

9. Americas

10. WFE MARKET INSIGHT AND

COMMENT

FOCUS FEATURE 16. TWSE’s recipe for staying at the

leading edge of sustainability

17. BI’s New Repo Future

19. MLex Regulatory Analysis

SEPTEMBER 2015 MARKET

STATISTICS 22. Market Capitalization

23. Number of Listed Companies

24. Value of Share Trading

25. Number of Trades

26. Stock Index Performance

FEDERATION NEWS

WFE ALERT Be sure to book your place for the 2015 CRM-Imperial

Workshop by December 4.

WFE News Headlines:

World Exchanges Launch Global Financial Education &

Literacy Initiative

Member exchanges wishing to have their news highlights

included in FOCUS are encouraged to email us at:

communications@world-exchanges.org

FOCUS December 2015 | Page 3

INTRODUCTION

Welcome to this month’s

packed edition of WFE’s

FOCUS E-zine.

Korea Stock Exchange (KRX)

Chairman and CEO

Kyungsoo Choi fills the

Exchange CEO Interview slot

this month. Choi highlights

many of the competitive

challenges currently facing

international exchange

groups in increasingly

globalised capital markets

and the global strategies

they adopt to cope with

them. Strategic alliances,

market linkages and product

collaboration with other

exchanges are among the

ways in which KRX has

responded with successful

results to this evolving

global market environment,

Choi points out.

In our main feature this

month we interview Michael

Lin at the Taiwan Stock

Exchange, TWSE President

and CEO of the exchange’s

corporate governance

centre. The article highlights

the way in which exchanges

are a key nexus in the

evolution of sustainable

finance around the world.

Staying ahead of the curve in

the sustainability stakes is

an ongoing challenge but

one which must be faced if

the TWSE is to continue to

be an attractive market for

international investors.

Meanwhile, Borsa Istanbul’s

Çetin Ali Dönmez and

Muammer Cakir explain the

specific demand and market

characteristics which made

the launch of an overnight

repo future such an obvious

choice for this fast-growing

exchange group. Up to this

point, the Turkish market

has lacked a reliable rate

fixing so the launch of a repo

future fills a useful gap.

Our regular Market Insight &

Analysis column by our

statistics team focuses on

some interesting global

developments in equity

futures and options, while

regulatory news and

intelligence group MLex has

interviewed IOSCO

Secretary General David

Wright and allowed us to re-

print his comments on the

need for more international

collaboration between trade

repositories. Wright is due

to leave IOSCO in 2016 and

is set to take over financial

think tank Eurofi.

FOCUS December 2015 | Page 4

How do you see disruptive

technologies and

innovation transforming

your own and global

markets in the next few

years?

Over the last few years, the

global capital markets have

witnessed a competitive

race to achieve zero latency

and trading platforms have

been upgraded to facilitate

HFT and algorithmic trading.

As a result, most of the

major exchanges are now

equipped with trading

platforms that can process

orders at microseconds,

making the competition for

speed less meaningful than

before. Given that, I believe

that agility, the ability of a

system to respond to

environmental changes in

an efficient and timely

manner, will become a key

factor in enhancing the

competitive edge of

exchanges.

To keep abreast of this

trend, in March 2014 KRX

launched EXTURE+, a low-

latency trading engine with

significantly improved

performance and functions,

over its predecessor,

EXTURE.

Technological advances

eliminate time and space

barriers, which in turn will

remove boundaries

between markets and

countries. To meet this

challenge, KRX is proactively

working, in various forms of

alliance or cooperation with

other global exchanges,

while streamlining its

market systems and IT

infrastructure in order to

effectively implement the

new business opportunities

which arise from these

developments.

Looking at the current

global economic, financial

and regulatory situation,

what stops you sleeping?

At the core of the global

regulatory reform agenda

which took shape following

the global financial crisis of

2008 is the mandatory

clearing of OTC derivatives

trades through CCPs and the

requirement to report these

trades to Trade Repositories

(TRs).

KRX acquired the license to

provide clearing services for

OTC derivatives from the

Korean government in 2013

and the CFTC issued an

order of exemption from

registration as a Derivatives

Clearing Organization to KRX

in October 2015. More

recently, the EU adopted an

equivalence decision for

CCPs in Korea, providing the

basis for KRX to be

recognized as a CCP by

ESMA. Furthermore, KRX

was selected as the operator

of a TR in Korea and

currently is in preparation

for launching the service in

early 2016.

Nonetheless, I have a little

concern about the side

effects that tapering and

other monetary policy exit

strategies of major

governments could bring to

the markets, especially to

the emerging markets

around the world.

While I understand the need

for an exit plan to prevent

fallout from excessive

liquidity, there needs to be a

careful approach to policy

making since the effects of a

sudden decrease in liquidity

could produce an emerging

market shock and so trigger

another financial crisis.

INTERVIEW:

Korea Exchange

Interview with Kyungsoo Choi, Chairman & CEO

FOCUS December 2015 | Page 5

Do you think that currently

markets are appropriately

regulated?

I believe that, to be

successful, a market needs

to strike a balance between

freedom and regulation. Too

much freedom in the market

may bring excessive

volatility which increases

risk factors. Meanwhile,

leaning towards excessive

regulation can restrict the

market’s growth potential.

I think the history of the

global capital market itself

demonstrates the

continuous efforts of market

players to seek the optimal

equilibrium between

freedom and regulation, in

the wake of various crises.

Nowadays, exchanges are

exerting efforts to diversify

their revenue sources by

providing innovative

products and delivering

innovative services to create

liquidity and business

opportunities. They are also

seeking to effectively

manage market risks

through the standardization

of OTC derivatives and by

strengthening the role of

CCPs.

I believe the current

governance of the global

capital market has achieved

a stable balance between

market autonomy and

regulation. However,

markets are becoming

increasingly interlinked and

regional risks can easily

spread and ultimately lead

to a global crisis, so there is

a strong need for closer

cooperation and

coordinated efforts for

stable and effective market

regulation.

What vision do you have for

your exchange and its

business?

I think the Korean capital

market is currently facing

two big challenges:

revitalizing its market and

strengthening its global

competitiveness.

In a bid to boost the

market’s vitality, KRX is

increasing its efforts to

create liquidity by finding

qualified companies to list

on the exchange and

developing new products to

meet customer needs.

With regards to growing

competition from abroad,

KRX is actively seeking new

business opportunities in

global areas through

strategic alliances, market

linkages, and possibly global

M&As. I believe the reform

of the governance structure

of KRX to a holding

company, which is currently

under way and the

subsequent IPO of KRX will

pave the way to pursue its

global strategy more

actively. I expect that KRX

will be better positioned for

the global diversification of

its business by upgrading its

market practices in line with

global standards, enhancing

its marketing capacity and

expanding product line-ups.

What specific projects,

initiatives or events do you

have to address real

economy issues (i.e. SME

finance, securitization or

alternative listing

markets)?

While many countries have

made efforts to nurture

start-up companies after the

global financial crisis of

2008, with policy initiatives

such as the JOBS Act in the

U.S., the Korean

government has also

implemented various efforts

to achieve the goal of the

policy, “Creative Economy”,

by fostering venture

companies with innovative

technologies. As part of this

effort, KRX established

KONEX, a specialized market

for start-up venture

companies in July 2013.

We also plan to establish a

business incubation centre

to help create a well-

functioning ecosystem for

start-up companies in

Korea. The centre will

provide various services

customized to meet the

needs of start-ups for fund

raising and exit: crowd

funding, mediation of

M&As, consulting, etc.

Has your exchange been

active in ESG topics? Are

you planning new

initiatives in this space?

In recent years, several

corporate governance issues

have been in the spotlight

and the impression has been

falsely created that these

FOCUS December 2015 | Page 6

are prevalent in all Korean

companies. I fear this could

have a negative effect on

foreign investment in the

Korean capital market as a

whole.

With this situation in mind,

KRX joined the UN

Sustainable Stock Exchanges

(SSE) Initiative last May for

the purpose of encouraging

listed companies to improve

their business performance

and seek sustainable

investment opportunities

through increased interest

in ESG issues.

Furthermore, KRX will

cooperate with the

government to update the

"Code for Best Practice for

Corporate Governance" -

which was introduced in

1999 and last revised in

2013 - to align with the

OECD Principles of

Corporate Governance, and

establish practical measures

to enforce corporate

compliance with the code.

KRX also plans to encourage

listed companies to disclose

ESG information in their

annual and sustainability

reports via a KRX disclosure

network, and to provide ESG

ratings of listed companies

to investors.

What has been your most

successful product of recent

years? What do you have in

the pipeline?

During the last decade one

of the most successful

products on KRX markets

has been ETPs. Since the

launch of the ETF market in

2002, assets under

management (AUM)

increased about 60 times to

KRW 20,691 billion

(USD17.817 billion) as of

September 2015, and the

average daily trading value

amounted to KRW 762

billion (USD 656 million),

increasing by about 23 times

during the same period.

In addition to conventional

ETFs, new types of ETFs,

such as inverse ETFs and

leverage ETFs, were

introduced to the market in

2009 and 2010 respectively -

for the first time in Asia.

Synthetic ETFs were added

to the product line-up in

2013, providing investors

with an efficient vehicle to

invest in various assets.

More recently, in November

2014, KRX launched the ETN

market. At the end of last

September, AUM (in net

asset value terms) of ETNs

stood at KRW 1,454 billion

(USD 1.252 billion).

Meanwhile, KRX introduced

Mini KOSPI 200 Futures &

Options in July, 2015. Mini

KOSPI 200 Derivatives are

designed to meet demands

for accurate hedging and to

provide investors with new

investment opportunities. In

four months after listing,

Mini KOSPI 200 Futures and

Options have enjoyed ample

market liquidity and supply

activity in the overall

market. Mini Futures

trading volume amounts to

around 20% of original

KOSPI 200 Futures.

Have you had a good

experience of international

collaboration and how

open is your exchange to

international investors?

Since the market was fully

opened to foreign

participants in 1998,

international investors have

been increasingly active in

the Korean market and

currently hold around 30%

of market capitalization. KRX

has actively sought to ease

any difficulties international

investors may have in

accessing the market.

As for recent developments,

static/dynamic volatility

interruptions were activated

this year as a price

stabilization measure. We

also plan to introduce a

market-making facility into

the stock market in order to

boost liquidity.

For KRX, the market links

with CME and Eurex for

KOSPI 200 Futures and

Options were a good

experience of global

collaboration. These two

global connections –

implemented in 2009 and

2010 respectively, are now

providing global investors

with effective tools to

manage market risks.

In order to provide investors

with a better trading

environment, in February

2016, KRX will establish a

FOCUS December 2015 | Page 7

new data centre in Busan

where the matching engine

of our derivatives market is

located. We are currently

discussing adoption of

omnibus accounts for

derivatives trading with our

regulator.

In addition to these

initiatives, KRX has

consistently sought to

improve the market

accessibility of foreign

investors, in consultation

with the regulator,

particularly in the areas of

currency convertibility and

ID system.

As such, based on its vast

experience of international

cooperation, KRX will keep

trying to make its markets as

user-friendly as possible and

so remain an attractive

investment destination for

global investment.

FOCUS December 2015 | Page 8

EXCHANGE HEADLINES

ASIA

NSE lists one more

company on its SME

platform

HKEx marks first

anniversary of Stock

Connect

HKEx announces group

structure changes ahead of

new strategic plan

BSE: Indian issuers get new

access to underlying

shareholder information

HKEx to roll out three more

London metal mini futures

on Dec 14

HKEx proposes to build

London-Hong Kong Connect

ICE Futures Singapore

launches with commodity

and FX serving Asian

markets

Shanghai SE-HKEx Connect

records safe, sound

operations in 1st year

Shanghai SE, MOEX hold

forum on Russian capital

markets

BM&FBOVESPA

compensates 2014

greenhouse gas emissions

Thai Bourse announces

winners of SET awards 2015

SET: Thai Bourse grants

annual social development

award

SET: Thailand Focus 2015 to

highlight country’s strength

to boost investment

sentiment

SET: Thai Bourse joins IMF

to hold first international

capital markets conference

NZX: Global Dairy Seminar

2015 Singapore

ASX and the Perth Mint to

develop precious metals

derivatives products

Singapore: SGX announces

launch of bond-trading

platform

EMEA

Euronext partners with

Heckyl Technologies to

provide sentiment analysis

Euronext Amsterdam

welcomes ABN AMRO – 2nd

largest IPO this year

Irish Stock Exchange Joins

WFE Global education and

entrepreneurship initiative

TASE Management Limits

the Weight Cap of Newly-

Listed Companies in Indices:

Stock Index Weight of New

Companies, whether Israeli

or Foreign, Not to Exceed

4%.

Borsa Istanbul: G20

conference - mobilizing

Islamic finance for long-

term investment held Nov

19

Deutsche Boerse and KfW

host 2015 German equity

market forum

Deutsche Boerse, Shanghai

SE and CFFEX: successful

market launch of CEINEX

Crown Prince and Crown

Princess visit Luxembourg

Stock Exchange

Berthold Kracke appointed

new CEO of Clearstream

Banking AG

Instituto BME and IBERCAJA

collaborate in promoting

financial training activities

Eurex: positive market

reception for recently

launched Euro-BONO and

Mini-DAX Futures

ICE Futures Europe to

introduce containerised

white sugar futures contract

in 2016

MTN Zakhele lists on JSE’s

Empowerment Segment

TASE launches options all

TA 25 Index shares

FOCUS December 2015 | Page 9

Nigeria Stock Exchange, CSCS Start Post-Trade Allocation Services Bolsa de Valores de Colombia joins financial discussions on climate change Colombia: BVC and

regulators select stuident

winners in market

architects competition

AMERICAS

CME Group expands base

metals offering with new

aluminium Japan premium

futures

CME Group extends

employment agreements

with Chairman Terry Duffy

and CEO Phupinder Gill

FinTech Sandbox and CME

Group offer historical data

to spur innovation among

FinTech Startups

BATS reports successful

launch of EDGX options

Environmental Financial Products, LLC (EFP) and CBOE Holdings (CBOE) Announce December 11 Launch of American Financial Exchange (AFX)

CBOE Joins with LiquidityBook to Expand

Connectivity to CBOE’s Pulse Trader Workstations

Intercontinental Exchange

to acquire Trayport from

BGC and GFI for $650

million in stock

ICE Futures Singapore

launches with commodity

and FX serving Asian

markets

Nasdaq to power New

Mexican stock exchange

FOCUS December 2015 | Page 10

MARKET INSIGHT AND COMMENT

By the WFE Research Team

Driven by Asia Pacific, the total number of Equity Derivative contracts traded

on exchanges worldwide increased by 11% during the first ten months of 2015

as compared to 2014.

From January 2015 to

October 2015, 10.5 billion

equity futures and options

were traded on exchanges

worldwide – up 11.2%

compared with the same

period of 2014.

Nevertheless this global

trend hides diverse

developments in particular

regions and within specific

asset classes.

The global increase was

primarily driven by the Asia-

Pacific region, which saw a

51.8% increase while

exchanges in the Americas

and EMEA witnessed an

8.6% and 0.6% fall in the

number of contracts traded

over the same period.

The spectacular

performance of Asian

markets over this period is

largely explained by growth

in the Indian derivatives

market. Indian equity

derivative volumes

increased by 66% in the first

10 months of the year

compared with the same

period of 2014 and accounts

so far in 2015 for 56% of the

number of the total of

equity derivative contracts

traded in the Asia Pacific

region. Other Asian markets

also experienced a

significant increase (up 38%)

in their business volumes.

In Mainland China, growth

was dampened by a 50-

million-contract fall in

volumes on the China

Financial Futures Exchange

(CFFEX) in September 2015.

This development can be

largely explained by the new

restrictions on trading

passed by the Chinese

government during the last

summer.

But it is important to keep in

mind that Asian markets

have smaller contract sizes,

making comparison with the

rest of the world not

straightforward. The higher

participation of retail

investors in Asian markets is

part of the explanation for

this. As a result, for the same

hedging need, Asian

markets will produce a

higher volume of contracts

than their EMEA and

American counterparts.

Oct-14 Oct-15 Growth

YTD YTD Rate

Americas 4,708 4,301 -8.6%

Asia Pac. 2,844 4,319 51.8%

EMEA 1,859 1,848 -0.6%

Total 9,411 10,468 11.2%

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

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Number of equity ETD worldwide traded volumes(billions of contracts)

Stock Options Stock Futures Index Options Index Futures ETF Options

FOCUS December 2015 | Page 11

The 8.6% decrease in

Americas was mainly

explained by the drop of

single stock and ETF options

volume in the United States

(down 11% in October 2015

YTD from October 2014

YTD). Over the same period

of time, the total number of

index options and futures

increased 0.5% in the US.

As shown in the following

graph, there is a strong

correlation between

volatility on equity markets

(as measured by the VIX

Index in the US) and

volumes of activity on equity

derivative markets.

In the EMEA region too,

overall stability (-0.6%)

masks contrasting trends

between single stock

derivatives and index

derivatives. The number of

single stock options and

futures traded decreased by

6%, whereas the volumes of

index derivatives increased

by 3%.

The comparison of the

average size of contracts

traded between various

types of equity derivatives

shows that single stock and

ETF derivatives, which tend

to be traded in smaller sizes,

are mostly used by retail

investors while index

products are used by

institutions. Developments

in 2015 would therefore

suggest diminishing retail-

level activity in EMEA and

the Americas.

Oct-14 Oct-15 Growth

YTD YTD Rate

Stock Opt 3,011 2,686 -10.8%

Stock Fut 790 880 11.4%

Index Opt 2,583 3,501 35.6%

Index Fut 1,891 2,357 24.7%

ETF Opt 1,137 1,044 -8.2%

Total 9,411 10,468 11.2%

0

5

10

15

20

25

30

35

40

45

50

0

100

200

300

400

500

600

700

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Evolution of the number of equity options and futures traded in the US compared to evolution of VIX Index

Stock Options Index Options Index Futures ETF Options VIX

FOCUS December 2015 | Page 12

FOCUS FEATURE:

TWSE’s recipe for staying at the leading

edge of sustainability

Michael Lin - president of the Taiwan Stock Exchange and CEO of the Taiwan

Corporate Governance Centre - explains TWSE’s recipe for staying at the

leading edge of sustainability and attracting foreign investment at the same

time.

WFE: TWSE has been very

active indeed in the ESG

space in recent years. When

did TWSE’s interest in the

sustainability agenda first

start and what prompted

it?

When the Asian financial crisis broke out in 1997, the OECD pointed out that

corporate governance issues were one root cause. The Asian financial crisis, Enron and other financial scandals in the US prompted Taiwan to enhance the wider awareness of corporate governance issues, and their importance for a country’s financial stability and economic development.

Because of this, our government has been advocating corporate governance to public companies since 1998. In view of this trend, the Premier established the Corporate Governance Task Force on January 7, 2003 to improve the soundness of our corporate sector.

FOCUS December 2015 | Page 13

But it was probably after the financial crisis of 2008 that market participants decided to turn a new page. Our regulator started to require public companies to disclose governance and CSR policies in their annual reports. In order to cultivate a CSR culture in companies, the TWSE published its CSR Best Practice Principles in 2010 and since then has been holding seminars and training courses for listed companies

WFE: What would you say are the main drivers of TWSE’s active ESG engagement?

The main driving forces for

ESG engagement can be

classified into the following

groups:

1. Government

The government has played a key part in ESG engagement, including the introduction of the CG roadmap and increased legislation.

2. Investors - especially institutional investors

Market pressure is mainly investor-led, and most companies have adopted a reactive position toward ESG management. Institutional investors with high capital and high purchasing power are also integrating these factors into their investment decisions

3. NGOs and the academic community

The academia and professional associations, such as the Taiwan Corporate Governance Association (TCGA) and the Business Council for Sustainable Development (BCSD), have led a number of initiatives promoting ESG integration. Their passion and active engagement have gradually built a culture that

values ESG.

4. Listed companies

Companies increasingly face critical questions and legal risks regarding the scope and content of their sustainability practices, as well as a need to ensure company-wide consistency and accuracy in their ESG statements. We’ve also noticed that more and more companies now take a proactive and long-term view on ESG which they believe is essential to the sustainability of their business as well as to attract and retain talent.

WFE: Have the TWSE’s sustainability initiatives increased the attractions of the venue as a place to list and invest?

Yes, investors aim for strong

financial performance, but

also believe that their

investments should be used

to contribute to

advancements in social,

environmental and

governance practices. They

seek out investments – such

as clean-tech portfolios –

that are likely to provide

important social or

environmental benefits.

Some investors embrace SRI

strategies to manage risk

and fulfil fiduciary duties;

they review ESG criteria to

assess the quality of

management and the

resilience of companies in

their portfolios.

The TWSE’s sustainability

initiatives help improve the

quality and depth of

sustainability information

being reported, and

increase consistency and

comparability of the

sustainability data collected

and disclosed by companies.

Companies that follow our

sustainability initiatives can

attract more investors and

identify opportunities, such

as those to cut costs, reduce

risks, and generate revenues

that they might have

otherwise missed.

Investors seeking to gain or shed exposure to the broad market index, particular sectors or geographical regions or specific rule-based investment strategies find that ETFs are a convenient, cost-effective tool to achieve these objectives. Over the past decade, demand for ETFs has grown markedly as investors – both institutional and retail – increasingly turn to them as investment options. As the ETF market has grown, so have

FOCUS December 2015 | Page 14

investors’ needs for investments with good social, environmental and governance practices. The percentage of our market value held by foreign investors has increased, from 34.02% at the end of 2012 to 38.29% at the end of 2014. Foreign listings account for a large percentage on Taiwan. The number of foreign-listed companies has risen from 6.8% in 2012 to 7.6% in 2014. WFE: What global sustainability initiatives and projects have been most effective do you think? Every initiative has its own role. The UN’s Sustainable Stock Exchange initiative1 is a peer-learning platform for exploring how exchanges can enhance companies’ performance on ESG issues. The WFE also launched a Sustainability Working Group. GRI and IR are focused on the reporting framework while PRI focuses on the investor angle. Their work has been effective and commendable. The TWSE joined the WFE SWG and assists in IR framework translation. In July, we became a GRI organizational stakeholder, as we share many of the same values. Our participation keeps us aligned with international

1 The Sustainable Stock Exchanges (SSE)

initiative is a peer-to-peer learning platform for

practices and at the cutting-edge WFE: Tell us a little about your recent GRI initiative – you’re the only exchange in Asia to join – what are the motivations and the aims of that? GRI promotes sustainability reporting, boosts companies’ market values and assists in shaping governance to achieve greater transparency and accountability. This is a principle in which the TWSE strongly believes. As such, we require some listed companies to compile CSR reports in accordance with GRI G4 guidelines, which provide benchmarks for comparability and readability The Taiwan market is set to continue making progress towards internationalization and attracting foreign investors, whose presence grows annually. The standards of information disclosure should be in line with international practices to better reflect investors’ diversified needs. The TWSE became a member of GRI Organizational Stakeholders (OS) on July 15, 2015. By doing so, we are able to support the establishment of sustainability reporting practices, receive GRI feedback and keep abreast of new developments from

exploring how exchanges, in collaboration with investors, regulators, and companies, can enhance corporate transparency – and ultimately

the dialogue between OS members. We believe it will be of great benefit to align our market regulations with international standards, attract foreign investment and enhance Taiwan’s global standing. We look forward to our continued and further work with GRI and OS members. WFE: …And the move to extend CSR reporting to smaller companies, can you give us some background on that? Taiwan’s listed companies vary greatly in size. However, we are convinced that CSR is a common value for companies of all shapes and sizes. Considering the difficulties for smaller companies to introduce a new ESG reporting cycle, we decided to start with larger companies. We are requiring listed firms with common stock equal to or greater than NT$5 billion and below NT$10 billion to compile and disclose CSR reports in 2017. The new amendments will expand TWSE's current reporting requirements, which mandates CSR reporting for companies with common stock of more than NT$10 billion. CSR reporting is also currently mandatory for listed companies in the food, financial, and chemical industries, as well as for listed companies where food and beverage sales

performance – on ESG (environmental, social and corporate governance) issues and encourage sustainable investment.

FOCUS December 2015 | Page 15

account for 50% or more of total annual revenue. Our target is to build the quantity and quality of ESG information disclosure, allowing investors to evaluate and compare each company’s performance. The experience of ESG reporting among larger companies will become a benchmark for small- and medium-sized companies. As of the end of October 2015, 137 TWSE-listed companies have published their CSR reports. We expect to reach 220 companies, or over 25% of TWSE-listed companies, by this year’s end, and even more in 2017.

WFE: Do you regard the WFE’s recently agreed enhanced sustainability guidelines as a major milestone for the global exchange sector?

It certainly is a great step. The SSE Model Guidance was issued in September 2015, and assists exchanges to further promote ESG. What the WFE has achieved is to extend the model guidance from guidelines to indicators. The WFE

2 In tandem with government efforts to boost the

employment rate, TWSE launched the TWSE RA Taiwan Employment Creation 99 Index（EMP 99）

in cooperation with Research Affiliates LLC（RA）

on 30 Dec., 2010. The innovative methodology was created by RA, selecting 99 TWSE-listed companies hiring the most Taiwanese employees. The more employees a constituent has, the

higher weighting is allocated. EMP 99 is aimed to encourage listed companies to hire more employees and fulfill social responsibility. The passive investment based on EMP 99 will lead funds to invest in the constituents with the most employees.

Sustainability Working Group has been dedicated to massive research and consultation. WFE’s recommendation is of great support to SSE Model Guidance and would allow companies to understand the key issues on which they should focus.

As an exchange, our mission is to assist companies in accessing sufficient capital to grow; however, during the development phase of a company, conflict of interest among stakeholders occurs. Exchanges recognize the value of corporate governance and sustainability, but most sustainability guidelines are not issued by exchanges. I believe the WFE recommendation is a milestone which symbolizes the increasingly important role which exchanges are playing in the journey

towards sustainability.

WFE: Are you planning further initiatives – events, products, regulations - in the ESG space you can tell us about?

CSR is always at the forefront of our governance

3 In support of the government’s policy to

encourage corporations to raise employee compensation, TWSE launched the TWSE RAFIR Taiwan High Compensation 100 Index (HC 100) in cooperation with Research Affiliates LLC (RA) on 25 Aug., 2014. 100 index constituents are selected and weighted according to high employee compensation. With the adoption of RA

fundamental index methodology, the HC 100 is a cost-effective underlying index for indexing investments, with the aim of motivating listed companies to distribute profits to their employees and fulfill corporate social responsibility. 4 Good corporate governance is integral to

efforts and ESG is being incorporated into the decision-making process of each market participant. Leveraging ESG as a market mechanism is a goal to which we strive and, to achieve this, we plan to compile a sustainability index in Taiwan. We have already issued some social- and governance-focused indices, including the EMP 99 Index2, HC 100 Index3 and CG 100 Index4. Their performance is relatively stable and has been adopted by most of our large government funds. Another important initiative is a Stewardship Code to promote stewardship responsibilities for institutional investors as equity owners or managers of listed companies, which we are currently drafting. We expect to launch the Code in 2016. With their ownership and active engagement, institutional investors will be able to help the companies they are investing in to establish sound corporate governance and enhance long-term value for their beneficiaries or clients.

corporate sustainability and the sound development of capital markets. In support of the government’s policy to encourage corporations to comply with good governance practices, TWSE launched the TWSE Corporate Governance 100 Index (CG 100) on 29 June, 2015. The main criterion for eligibility into the 100 index constituents is to score in the top 20% of the Corporate Governance Evaluation System. In addition, liquidity and financial health screens are

used to determine index membership and ensure that the constructed index is ideal for future passive investment products or as an underlying benchmark for pension funds.

With the recent launch of an overnight repo rate future, Çetin Ali Dönmez,

Executive Vice President, and Muammer Cakir, Head of Derivatives Market,

Borsa Istanbul, explain that the Turkish exchange has taken a first step

towards filling an important gap in its product portfolio…

WFE: Explain a little of the background to your new rates product – i.e. what did you see as the gap in the market that a rate-hedging product would address?

The fact is there is no reliable reference interest rate fixing in Turkish Lira. TRLIBOR is the reference interest rate used in Turkey since 2002 but it has its own problems similar to those which bedevilled LIBOR. TRLIBOR liquidity is not big enough to influence the wider rates market, where it is used as a benchmark for loans. There is not enough unsecured lending and borrowing among Turkish banks for longer tenors or even short tenors. However, the repo market at Borsa Istanbul has become a well-established market for secured lending and

borrowing in Turkish Lira for short tenors, predominantly overnight.

Turkish Lira fixed income and repo markets are one of the most liquid and developed ones in the emerging markets space. The Turkish Lira-denominated Interbank Repo Market with $13.5 billion daily volume is one of the largest exchange traded markets in the world. After the 2001 crisis in Turkey, all of the repo trades moved from OTC to the regulated on-screen market with the exchange taking care of risk management. It is now a risk-free environment for both sides of the trade.

The Central Bank of Turkey also executes its repo transactions on the same platform. So, the current push for central clearing of

OTC trades in Developed Markets happened almost 15 years ago in Turkey. A crisis has a unique way of compelling reform.

Given that the repo is the most liquid rate trade taking place at the exchange and the lack of reliable rate fixings in the market gave us the opportunity to fill the gap by launching the overnight repo rate future. The lack of a reliable fixing had a detrimental effect on the development of the interest rate swap market in Turkish Lira. Reliable, highly liquid and efficient underlying, monthly and quarterly overnight repo rate futures contracts will offer fixings which can be used in pricing of the Overnight Index Swaps (OIS) in Turkish Lira. Development of the interest rate swap market is especially

BI’s new repo future is

mainly aimed at local needs

but will produce widespread

benefits

FOCUS December 2015 | Page 17

important for Turkish banks which has long-term TL exposures on their books and typically short-term funding.

WFE: Who/What were the main demand drivers for this new product?

This product is mainly designed for institutions, i.e. banks and money market funds. If you take into account that 63% of the total trade volume at the derivatives market is executed by retail investors and almost 30% by foreign investors, you can conclude that - with only a 7% share - local institutions were a bit shy of using our derivatives products. By launching repo rate futures, we have taken the first step to fill the gap in the product portfolio which is aimed at institutional investors

Basically, banks are short Turkish Lira and money market funds are long, so by using this product they can manage their short-term rate risks. Additionally, foreign banks and financial institutions’ access to

Turkish Lira repo market is quite limited if they do not have a branch in Turkey. They can easily manage their short-term rate risks by using this product which they can trade via an already well-established brokerage system.

Most corporate treasuries borrow overnight or their floating rate is based on the overnight repo rate. There are times that they prefer to hedge their exposure depending on market expectations. They are expected to utilise this product for that purpose too.

The rate implied by the repo rate futures can also be used to measure market expectations of Central Bank of Turkey policy changes. Eventually, the investor community and money

market participants will have an efficient hedging tool and the ability to predict the Central Bank of Turkey’s rate policy by utilising this product.

WFE: How will the new product help Borsa Istanbul secure its place as a regional financial centre?

Borsa Istanbul Derivatives Market VIOP is the region’s leading and most liquid derivatives marketplace with a diverse range of products. In the 2015 YTD, the number of contracts traded has gone up 49% and is projected to reach 90 million contracts by the end of the year. Borsa Istanbul has very strong local liquidity and well-established connectivity to global financial centres. We are trying to build on this capacity in order to offer financial services to the region and also become a gateway to the region for foreign investors to access in an efficient manner

On our platform, we are offering futures contracts on the regional exchange indices. Currently we offer futures on SASX10, a benchmark index of Sarajevo Stock Exchange and two other regional exchange indices are in the pipeline. We are positioning Borsa Istanbul as the gateway to the region for global investors. While overnight Repo rate futures in Turkish Lira are designed primarily for local markets, as mentioned earlier, they enable foreign financial institutions to manage their short-term rate exposure in Turkish Lira in an efficient and cost-effective manner without taking counterparty risks.

FOCUS December 2015 | Page 18

WFE: How does it fit with the rest of Borsa Istanbul’s derivatives product suite?

We are continuously expanding our product portfolio to meet the risk-management needs of the community. Equity, FX and Precious Metals are the main asset classes where we have most liquidity at Borsa Istanbul Derivatives Market – or VIOP. More recently, we have been working on energy, steel and other commodities, like wheat and cotton, to build up liquidity. The first interest rate product - futures on Bond ETF - was launched early this year as a hedging tool for medium/long term rate exposure in Turkish Lira. The overnight repo rate futures, as a short term rate exposure hedging tool, will complement our interest rate product suite

WFE: Has it been well received in the markets,

what have volumes been like?

We are experiencing the usual reluctance of banks, which are used to doing trades in the OTC market based on credit lines without initial margin. Posting initial collateral for these type of trades might be initially discouraging for the banks. However, as we have seen a similar evolution in the OTC swaps markets, with ISDA and attached CSAs for mark-to-market purposes, we should expect to see banks adopting the concept of posting initial margin soon

Do you envisage future similar such products? What next?

We are committed to

expanding the product

portfolio, especially in the

rate, FX, commodity and

energy asset classes. We are

planning to replicate the

success of the repo future

on the exchange for similar

interest rate and treasury

products traded in OTC

markets.

This year FX Futures trade

volume has increased 216%

YTD on top of last year’s 41%

increase. Traded volumes in

FX Options - launched last

year - are growing

exponentially. Borsa

Istanbul Derivatives Market

- VIOP - is the fastest-

growing FX derivatives

platform globally. To

leverage that growth, we

are working on launching

regional FX pairs for trading

on our platform. Chinese

Renminbi futures contracts

are the first ones from the

emerging market FX sphere.

Following that, Turkey`s

most important trade

currencies are in the

pipeline.

MLEX Interview

IOSCO’s Wright laments authorities’ lack of coordination on

derivatives trade reporting

Global authorities erred in encouraging banks to report derivatives trades without first creating a

transaction identification system and should avoid this kind of mistake on cybersecurity and

financial benchmarks, a top regulator told MLex.

“You’ve got to have some

basic measure of

coordination here,” David

Wright, secretary general of

the International

Organization of Securities

Commissions, said in a

recent interview with

regulatory news and policy

intelligence service MLEX.

For derivatives reporting,

Wright said authorities

should have acted first to

fashion a system of ID tags

for traders, products and

transactions.

Only when this architecture

was established should they

have adopted standards for

reporting transactions to

electronic trade

repositories, he said.

“We put the cart before the

horse,” Wright, who is

leaving the standard-setter

at year-end to join an

industry group, said last

week on the side-lines of a

Washington, DC

conference.*

Repository problems

Repositories have been

beset by reporting problems

that make it impossible for

regulators to aggregate

transactions and anticipate

the kind of risk exposure

that brought down Lehman

Brothers.

The marker for repositories

was set in 2009, when the

Group of 20 economic

powers agreed to reform

over-the-counter

derivatives markets. These

leaders asked the Financial

Stability Board to regularly

assess implementation.

This month the FSB noted

“widespread concern”

among regulators about

legal barriers to reporting

transaction information. It

said member jurisdictions

have agreed to address

these obstacles by June

2018.

“Don’t be surprised if laws

come out differently,”

Wright said.

Disparate laws on trade

reporting and other issues

would favour large banks

and companies, he said.

“How do you expect a small

firm to navigate through 10

different sets of rules at the

global level?” he said. “It’s

too expensive.”

LEIs

Legal entity identifiers (LEIs),

the ID tags for derivatives

traders, started getting off

the ground globally in early

2013, when the FSB

delegated their

development to the

Regulatory Oversight

Committee.

More recently, IOSCO

sought comment in August

on how to harmonize trade

IDs, called unique

transaction identifiers.

Authorities also plan to seek

comment soon on product

IDs called unique product

identifiers.

FOCUS December 2015 | Page 20

Upcoming issues

Looking ahead, Wright said

authorities have to be sure

to coordinate on a host of

upcoming cross-border

issues.

“Are we going to work on

cybercrime together?” he

said. “I don’t know.

Benchmarking is another

one.”

Last week, the US and UK

governments conducted a

joint exercise with global

financial firms to try to

strengthen the industry’s

ability to respond to

cybersecurity threats.

For financial benchmarks

such as Libor, EU legislators

are considering measures to

avoid a trans-Atlantic

conflict. One proposal could

recognize indexes case by

case rather than on the basis

of home-country laws.

MLex is a leading provider of global regulatory and policy insight and analysis. For more information about MLex Financial Services service, please contact customerservices@mlex.com or call +44 203 402 7000

FOCUS December 2015 | Page 21

WFE MARKET STATISTICS

October 2015

CONTENTS

EQUITY Domestic Market Capitalization 22 Number of listed companies 23 Value of Share Trading 24 Number of trades in Equity Shares 25 Broad Stock Index performance 26

FOCUS December 2015 | Page 22

EQUITY – Market Capitalization (USD millions)

Source : World Federation of Exchanges members

Total excludes National Stock Exchange of India to avoid double counting with Bombay SE

Data combine the main and Alternative / SMEs market capitalizations.

Australian SE: including investment funds

BME: including investment companies listed (open-end investmernt companies) that differ from investment funds included in table 1.3.2

because of their legal status and that cannot be distinguished from other listed companies

October

Americas

Bermuda Stock Exchange 1 246.2 -23.4% -23.4%

BM&FBOVESPA 528 527.9 -46.5% -15.1%

Bolsa de Comercio de Buenos Aires 75 699.7 2.5% 14.7%

Bolsa de Comercio de Santiago 201 460.5 -18.0% -2.2%

Bolsa de Valores de Colombia 100 757.8 -44.9% -21.7%

Bolsa de Valores de Lima 59 714.7 -24.4% -15.7%

Bolsa Mexicana de Valores 434 891.0 -19.2% -0.3%

Nasdaq - US 7 412 669.6 8.4% 8.4%

NYSE 18 653 930.1 -2.8% -2.8%

TMX Group 1 712 802.9 -20.0% -6.4%

Total region 29 181 700.4 -3.6%

Asia - Pacific

Austra l ian Securi ties Exchange 1 132 690.4 -19.5% -0.2%

BSE India Limited 1 508 588.8 -4.4% 1.5%

Bursa Malays ia 487 782.9 -6.9% -6.9%

Colombo Stock Exchange 21 522.5 -9.5% -3.8%

Hochiminh Stock Exchange 54 148.3 6.8% 11.1%

Hong Kong Exchanges and Clearing 3 236 336.7 -0.9% -0.9%

Indones ia Stock Exchange 345 573.1 -17.6% -7.3%

Japan Exchange Group - Tokyo 4 805 142.6 8.5% 17.0%

Korea Exchange 1 294 094.4 5.0% 12.2%

National Stock Exchange of India 1 481 089.9 -4.2% 1.7%

NZX Limited 68 490.3 -3.4% 12.5%

Phi l ippine Stock Exchange 245 258.6 -4.7% -0.4%

Shanghai Stock Exchange 4 387 680.7 48.2% 53.9%

Shenzhen Stock Exchange 3 121 725.6 59.7% 65.8%

Singapore Exchange 663 121.6 -13.7% -5.8%

Stock Exchange of Thai land 379 712.7 -15.9% -8.1%

Taipei Exchange 78 524.8 -3.1% 3.7%

Taiwan Stock Exchange Corp. 768 442.6 -9.5% -3.2%

Total region 22 598 836.5 11.2%

Europe - Africa - Middle East

Abu Dhabi Securi ties Exchange 112 863.4 -6.8% -6.8%

Amman Stock Exchange 24 262.5 -5.1% -5.2%

Athens Stock Exchange 35 413.0 -45.0% -37.1%

Bahra in Bourse 19 678.6 - -

BME Spanish Exchanges 856 304.3 -19.8% -8.1%

Borsa Is tanbul 197 657.5 -8.1% 21.2%

Bourse de Casablanca 46 527.2 -19.4% -10.0%

Budapest Stock Exchange 16 146.5 2.2% 18.0%

Cyprus Stock Exchange 3 053.7 41.4% 61.9%

Deutsche Boerse 1 718 508.3 1.6% 16.3%

Dubai Financia l Market 93 589.2 -7.2% -7.2%

Egyptian Exchange 56 739.6 -19.7% -10.1%

Euronext 3 394 213.0 0.7% 15.2%

Iri sh Stock Exchange 144 951.1 -11.2% 1.6%

Johannesburg Stock Exchange 852 715.8 -12.3% 9.3%

Kazakhstan Stock Exchange 41 319.2 70.9% 163.2%

Ljubl jana Stock Exchange 5 970.0 -24.1% -13.2%

Luxembourg Stock Exchange 49 797.9 -24.9% -14.1%

Malta Stock Exchange 4 223.4 13.2% 29.6%

Moscow Exchange 450 033.3 -18.7% 21.4%

Muscat Securi ties Market 38 369.2 -1.7% -2.0%

NASDAQ OMX Nordic Exchange 1 216 583.1 -1.2% 13.1%

Nigerian Stock Exchange 50 440.8 - -

Oslo Bors 200 985.1 -18.7% 3.1%

Qatar Stock Exchange 167 191.3 -16.4% -16.5%

Saudi Stock Exchange (Tadawul) 434 530.5 -20.3% -20.3%

SIX Swiss Exchange 1 515 206.0 0.0% 3.1%

Stock Exchange of Mauri tius 7 468.3 -15.9% -7.2%

Tel -Aviv Stock Exchange 214 190.5 5.2% 7.7%

Wiener Borse 94 657.8 -5.8% 7.8%

Total region 12 063 590.0 -5.5%

WFE Total 63 844 126.8 0.8%

Exchange

% change /

Oct 14

(in USD)

% change /

Oct 14

(in local cur)

FOCUS December 2015 | Page 23

EQUITY – Number of Listed Companies

Source: World Federation of Exchanges members

BME: Including investment companies listed (open-end investmernt companies) that differ from investment funds included in table 1.3.2

because of their legal status and that cannot be distinguished from other listed companies.

Deutsche Börse: Excluding the market segment "Freiverkehr" (unofficial regulated market)

Lima SE: Includes 26 foreign companies with shares negotiated under a special modality

NASDAQ OMX Nordic Exchange : OMX includes Copenhagen, Helsinki, Iceland, Stockholm, Tallinn, Riga and Vilnius Stock Exchanges

NSE India: Includes "Emerge" market data

TotalDomestic

co's

Foreign

co's

Americas

BATS Global Markets - US NA NA NA -

Bermuda Stock Exchange 67 13 54 13.6%

BM&FBOVESPA 359 347 12 -1.6%

Bolsa de Comercio de Buenos Aires 99 93 6 -2.0%

Bolsa de Comercio de Santiago 311 222 89 2.6%

Bolsa de Valores de Colombia 73 69 4 -1.4%

Bolsa de Valores de Lima 298 209 89 13.3%

Bolsa Mexicana de Valores 141 134 7 -2.1%

Nasdaq - US 2 859 2 477 382 3.6%

NYSE 2 446 1 926 520 -0.1%

TMX Group 3 590 3 530 60 -4.9%

Total region 10 243 -0.5%

Asia - Pacific

Austra l ian Securi ties Exchange 2 083 1 971 112 1.3%

BSE India Limited 5 789 5 788 1 5.3%

Bursa Malays ia 903 893 10 -0.1%

Colombo Stock Exchange 294 294 NA 0.7%

Hochiminh Stock Exchange 308 308 0 1.7%

Hong Kong Exchanges and Clearing 1 830 1 735 95 5.8%

Indones ia Stock Exchange 518 518 0 3.4%

Japan Exchange Group - Tokyo 3 494 3 484 10 1.6%

Korea Exchange 1 910 1 896 14 4.4%

National Stock Exchange of India 1 781 1 780 1 4.4%

NZX Limited 185 165 20 8.8%

Phi l ippine Stock Exchange 263 260 3 1.2%

Shanghai Stock Exchange 1 071 1 071 NA 9.3%

Shenzhen Stock Exchange 1 729 1 729 NA 7.8%

Singapore Exchange 769 483 286 -0.1%

Stock Exchange of Thai land 634 634 NA 5.1%

Taipei Exchange 700 673 27 3.2%

Taiwan Stock Exchange Corp. 892 821 71 1.8%

Total region 25 153 3.9%

Europe - Africa - Middle East

Abu Dhabi Securi ties Exchange 68 65 3 4.6%

Amman Stock Exchange 231 231 0 -2.5%

Athens Stock Exchange 241 237 4 -2.8%

Bahra in Bourse 46 44 2 -

BME Spanish Exchanges 3 647 3 617 30 6.7%

Borsa Is tanbul 256 255 1 14.3%

Bourse de Casablanca 74 73 1 0.0%

Budapest Stock Exchange 45 45 0 -4.3%

Cyprus Stock Exchange 86 86 0 -8.5%

Deutsche Boerse 630 562 68 -7.9%

Dubai Financia l Market 59 59 0 3.5%

Egyptian Exchange 252 250 2 4.6%

Euronext 1 066 944 122 0.4%

Iri sh Stock Exchange 52 43 9 0.0%

Johannesburg Stock Exchange 379 316 63 1.6%

Kazakhstan Stock Exchange 82 76 6 7.9%

Ljubl jana Stock Exchange 47 47 0 -11.3%

Luxembourg Stock Exchange 196 27 169 -11.7%

Malta Stock Exchange 22 22 0 -8.3%

Moscow Exchange 258 254 4 -0.8%

Muscat Securi ties Market 117 117 NA -0.8%

NASDAQ OMX Nordic Exchange 816 784 32 5.2%

Nigerian Stock Exchange 184 183 1 -

Oslo Bors 213 170 43 -2.7%

Qatar Stock Exchange 43 43 NA 0.0%

Saudi Stock Exchange (Tadawul) 171 171 NA 2.4%

SIX Swiss Exchange 270 234 36 -2.2%

Stock Exchange of Mauri tius 71 70 1 7.6%

Tel -Aviv Stock Exchange 459 440 19 -3.0%

Wiener Borse 96 82 14 -2.0%

Total region 10 177 2.1%

WFE Total 45 573 2.5%

October

% change /

Oct 14

Exchange

FOCUS December 2015 | Page 24

EQUITY – Value of Share Trading (USD millions)

Source : World Federation of Exchanges members

Due to different reporting rules & calculation methods, turnover figures are not entirely comparable

Australian SE: include investment funds

BME: including investment companies listed (open-end investmernt companies) that differ from investment funds included in table 1.3.2

October

Americas

BATS Global Markets - US 223 101.6 22 1 943 309.3 1.4%

Bermuda Stock Exchange NA 22 104.0 -

BM&FBOVESPA 21 428.1 21 193 587.4 -2.3%

Bolsa de Comercio de Buenos Aires 137.8 21 1 100.4 41.2%

Bolsa de Comercio de Santiago 223.3 21 2 282.4 6.2%

Bolsa de Valores de Colombia 48.8 21 491.7 -3.2%

Bolsa de Valores de Lima 5.3 20 75.1 5.4%

Bolsa Mexicana de Valores 4 730.3 22 38 768.4 18.8%

Nasdaq - US 169 495.9 22 1 493 000.5 3.5%

NYSE 167 933.9 22 1 455 229.2 3.6%

TMX Group 21 688.9 21 233 224.9 -1.8%

Total region 608 793.9 5 361 173.4 2.4%

Asia - Pacific

Austra l ian Securi ties Exchange 17 371.7 22 167 897.4 -8.5%

BSE India Limited 31 110.5 20 324 905.8 13.4%

Bursa Malays ia 3 495.2 21 30 910.3 6.9%

Colombo Stock Exchange 142.1 21 1 356.8 18.3%

Hochiminh Stock Exchange 1 015.1 22 8 707.0 34.6%

Hong Kong Exchanges and Clearing 19 353.6 20 240 989.1 -3.0%

Indones ia Stock Exchange 5 544.2 21 45 548.9 27.9%

Japan Exchange Group - Tokyo 66 979.5 21 647 504.4 2.7%

Korea Exchange 155 851.4 21 1 476 112.1 12.4%

National Stock Exchange of India 146 145.3 20 1 583 278.1 -2.2%

NZX Limited 109.1 21 1 068.6 -7.6%

Phi l ippine Stock Exchange 1 183.0 22 11 070.1 -2.4%

Shanghai Stock Exchange 293 875.0 17 4 428 806.0 -0.4%

Shenzhen Stock Exchange 371 201.2 17 3 668 360.8 23.0%

Stock Exchange of Thai land 6 894.7 21 76 499.6 -5.3%

Taipei Exchange 4 937.3 21 42 704.3 16.1%

Taiwan Stock Exchange Corp. 15 903.1 21 150 877.3 8.4%

Total region 1 141 112.1 12 906 596.6 8.4%

Europe - Africa - Middle East

Abu Dhabi Securi ties Exchange 25.7 20 386.3 -29.2%

Amman Stock Exchange 87.6 20 753.1 16.6%

Athens Stock Exchange 344.3 21 4 944.6 1.6%

BATS Chi -x Europe 51 900.5 22 460 921.9 0.7%

BME Spanish Exchanges 5 176.8 22 52 869.5 4.2%

Borsa Is tanbul 7 460.3 21 76 068.6 36.5%

Bourse de Casablanca 10.8 21 109.3 22.8%

Budapest Stock Exchange 99.4 21 1 098.2 -2.0%

Cyprus Stock Exchange 2.5 20 35.4 1.5%

Deutsche Boerse 12 359.2 22 114 164.7 -2.8%

Dubai Financia l Market 70.1 21 1 382.1 -13.3%

Egyptian Exchange 379.7 19 3 993.9 16.4%

Euronext 20 241.6 22 192 217.5 0.2%

Iri sh Stock Exchange 244.0 22 2 220.8 -5.9%

Johannesburg Stock Exchange 5 304.1 22 51 437.5 -8.9%

Kazakhstan Stock Exchange 5.1 22 32.8 19.5%

Luxembourg Stock Exchange 0.9 22 9.0 55.2%

Malta Stock Exchange 0.7 22 9.0 -20.1%

Moscow Exchange 9 274.1 22 90 437.4 14.3%

Muscat Securi ties Market 17.9 20 237.1 32.1%

NASDAQ OMX Nordic Exchange 9 702.7 21 86 202.5 8.2%

Nigerian Stock Exchange 59 891.0 21 822 312.0 -23.7%

Oslo Bors 2 153.0 22 21 275.3 12.3%

Qatar Stock Exchange 83.2 21 1 029.6 5.8%

Saudi Stock Exchange (Tadawul) 2 038.9 21 25 615.2 24.5%

SIX Swiss Exchange 4 105.9 22 41 008.1 -7.5%

Stock Exchange of Mauri tius 4.0 22 46.8 -8.6%

Tel -Aviv Stock Exchange 943.7 19 10 054.9 17.9%

Wiener Borse 508.5 21 5 081.3 -3.6%

Total region 192 435.9 2 065 954.6 -7.0%

WFE Total 1 942 341.9 20 333 724.6 4.8%

ExchangeTrading days

Oct 15 Year-to-date

% change /

last month

FOCUS December 2015 | Page 25

EQUITY – Number of Trades (thousands)

Source : World Federation of Exchanges members

Australian SE: include investment funds

BME: Including investment companies listed (open-end investmernt companies) that differ from investment funds included in table 1.3.2

because of their legal status and that cannot be distinguished from other listed companies.

NASDAQ OMX Nordic Exchange : OMX includes Copenhagen, Helsinki, Iceland, Stockholm, Tallinn, Riga and Vilnius Stock Exchanges

October

Americas

BATS Global Markets - US 223 101.6 22 1 943 309.3 1.4%

Bermuda Stock Exchange NA 22 104.0 -

BM&FBOVESPA 21 428.1 21 193 587.4 -2.3%

Bolsa de Comercio de Buenos Aires 137.8 21 1 100.4 41.2%

Bolsa de Comercio de Santiago 223.3 21 2 282.4 6.2%

Bolsa de Valores de Colombia 48.8 21 491.7 -3.2%

Bolsa de Valores de Lima 5.3 20 75.1 5.4%

Bolsa Mexicana de Valores 4 730.3 22 38 768.4 18.8%

Nasdaq - US 169 495.9 22 1 493 000.5 3.5%

NYSE 167 933.9 22 1 455 229.2 3.6%

TMX Group 21 688.9 21 233 224.9 -1.8%

Total region 608 793.9 5 361 173.4 2.4%

Asia - Pacific

Austra l ian Securi ties Exchange 17 371.7 22 167 897.4 -8.5%

BSE India Limited 31 110.5 20 324 905.8 13.4%

Bursa Malays ia 3 495.2 21 30 910.3 6.9%

Colombo Stock Exchange 142.1 21 1 356.8 18.3%

Hochiminh Stock Exchange 1 015.1 22 8 707.0 34.6%

Hong Kong Exchanges and Clearing 19 353.6 20 240 989.1 -3.0%

Indones ia Stock Exchange 5 544.2 21 45 548.9 27.9%

Japan Exchange Group - Tokyo 66 979.5 21 647 504.4 2.7%

Korea Exchange 155 851.4 21 1 476 112.1 12.4%

National Stock Exchange of India 146 145.3 20 1 583 278.1 -2.2%

NZX Limited 109.1 21 1 068.6 -7.6%

Phi l ippine Stock Exchange 1 183.0 22 11 070.1 -2.4%

Shanghai Stock Exchange 293 875.0 17 4 428 806.0 -0.4%

Shenzhen Stock Exchange 371 201.2 17 3 668 360.8 23.0%

Stock Exchange of Thai land 6 894.7 21 76 499.6 -5.3%

Taipei Exchange 4 937.3 21 42 704.3 16.1%

Taiwan Stock Exchange Corp. 15 903.1 21 150 877.3 8.4%

Total region 1 141 112.1 12 906 596.6 8.4%

Europe - Africa - Middle East

Abu Dhabi Securi ties Exchange 25.7 20 386.3 -29.2%

Amman Stock Exchange 87.6 20 753.1 16.6%

Athens Stock Exchange 344.3 21 4 944.6 1.6%

BATS Chi -x Europe 51 900.5 22 460 921.9 0.7%

BME Spanish Exchanges 5 176.8 22 52 869.5 4.2%

Borsa Is tanbul 7 460.3 21 76 068.6 36.5%

Bourse de Casablanca 10.8 21 109.3 22.8%

Budapest Stock Exchange 99.4 21 1 098.2 -2.0%

Cyprus Stock Exchange 2.5 20 35.4 1.5%

Deutsche Boerse 12 359.2 22 114 164.7 -2.8%

Dubai Financia l Market 70.1 21 1 382.1 -13.3%

Egyptian Exchange 379.7 19 3 993.9 16.4%

Euronext 20 241.6 22 192 217.5 0.2%

Iri sh Stock Exchange 244.0 22 2 220.8 -5.9%

Johannesburg Stock Exchange 5 304.1 22 51 437.5 -8.9%

Kazakhstan Stock Exchange 5.1 22 32.8 19.5%

Luxembourg Stock Exchange 0.9 22 9.0 55.2%

Malta Stock Exchange 0.7 22 9.0 -20.1%

Moscow Exchange 9 274.1 22 90 437.4 14.3%

Muscat Securi ties Market 17.9 20 237.1 32.1%

NASDAQ OMX Nordic Exchange 9 702.7 21 86 202.5 8.2%

Nigerian Stock Exchange 59 891.0 21 822 312.0 -23.7%

Oslo Bors 2 153.0 22 21 275.3 12.3%

Qatar Stock Exchange 83.2 21 1 029.6 5.8%

Saudi Stock Exchange (Tadawul) 2 038.9 21 25 615.2 24.5%

SIX Swiss Exchange 4 105.9 22 41 008.1 -7.5%

Stock Exchange of Mauri tius 4.0 22 46.8 -8.6%

Tel -Aviv Stock Exchange 943.7 19 10 054.9 17.9%

Wiener Borse 508.5 21 5 081.3 -3.6%

Total region 192 435.9 2 065 954.6 -7.0%

WFE Total 1 942 341.9 20 333 724.6 4.8%

ExchangeTrading days

Oct 15 Year-to-date

% change /

last month

FOCUS December 2015 | Page 26

EQUITY – Broad Stock Index Performance

Source : World Federation of Exchanges members

October

Americas

Bermuda Stock Exchange BSX Index 1 246.19 2.6% -9.6%

BM&FBOVESPA Ibovespa 45 868.81 1.8% -16.0%

Bolsa de Comercio de Buenos Aires Compos ite 497 760.73 26.3% -3.2%

Bolsa de Comercio de Santiago IGPA 18 811.30 4.2% -0.2%

Bolsa de Valores de Colombia COLEQTY 838.29 0.0% -23.3%

Bolsa de Valores de Lima Indice Genera l BVL (IGBVL) 10 545.61 5.1% -32.7%

Bolsa Mexicana de Valores IPC CompMx 364.58 4.4% -0.6%

Nasdaq - US Compos ite 5 053.75 9.4% 9.1%

NYSE Compos ite 10 460.96 6.7% -3.5%

TMX Group S&P/TSX Compos ite 13 529.17 1.7% -7.4%

Asia - Pacific

Austra l ian Securi ties Exchange Al l Ordinary Price 5 288.56 4.5% -3.9%

BSE India Limited S&P BSE 500 10 671.58 1.7% 0.7%

Bursa Malays ia FBM Emas Index 11 573.90 3.3% -10.2%

Colombo Stock Exchange CSE Al l Share 7 042.06 -0.1% -3.9%

Hochiminh Stock Exchange VN Index 607.37 8.0% 1.1%

Hong Kong Exchanges and Clearing S&P/HKEX LargeCap Index 27 808.14 8.8% -4.7%

Indones ia Stock Exchange JSX Compos ite Index 4 455.18 5.5% -12.5%

Japan Exchange Group - Tokyo TOPIX 1 558.20 10.4% 16.8%

Korea Exchange KOSPI 2 029.47 3.4% 3.3%

National Stock Exchange of India S&P CNX 500 6 750.95 1.6% 1.0%

NZX Limited Gross Index 6 425.43 6.9% 11.3%

Phi l ippine Stock Exchange PSE Index (PSEi ) 7 134.26 3.5% -1.1%

Shanghai Stock Exchange SSE Compos ite Index 3 382.56 10.8% 39.8%

Shenzhen Stock Exchange SZSE Compos ite Index 2 014.86 17.4% 49.2%

Singapore Exchange Stra i ts Times Index 2 998.35 7.4% -8.4%

Stock Exchange of Thai land SET Index 1 394.94 3.4% -11.9%

Taipei Exchange TPEx index 124.83 6.2% -3.4%

Taiwan Stock Exchange Corp. TAIEX 8 554.31 4.6% -4.7%

Europe - Africa - Middle East

Abu Dhabi Securi ties Exchange ADI 4 322.04 -4.0% -11.1%

Amman Stock Exchange ASE Index 2 034.42 -0.5% -3.4%

Athens Stock Exchange Genera l Price 701.22 7.2% -23.4%

BME Spanish Exchanges Barcelona BCN Global - 100 Index 827.02 7.8% -6.1%

BME Spanish Exchanges Bi lbao Indice Bolsa Bi lbao 2000 1 711.73 8.6% 0.8%

BME Spanish Exchanges Madrid IGBM Index 1 043.91 8.1% -1.7%

BME Spanish Exchanges Valencia IGBV Index 1 263.31 8.6% 0.2%

Borsa Is tanbul BIST 100 79 409.00 7.0% -1.5%

Borsa Ita l iana FTSE Ita l ia MIB Storico 19 203.00 6.0% 17.6%

Bourse de Casablanca MASI Float 9 081.80 -0.4% -12.3%

Budapest Stock Exchange BUMIX 1 594.21 -1.5% 9.8%

Cyprus Stock Exchange CSE Genera l Index 73.96 -0.7% -32.2%

Deutsche Boerse CDAX Price 512.31 11.3% 15.4%

Dubai Financia l Market DFMGI 3 503.75 -2.5% -22.9%

Egyptian Exchange EGX 30 Index 7 507.89 2.4% -17.6%

Euronext Amsterdam AAX 706.57 9.2% 12.2%

Euronext Brussels Genera l Price 12 762.42 8.7% 11.0%

Euronext Lisbon BVL Genera l 2 517.16 8.0% 7.2%

Euronext Paris SBF 250 3 754.04 9.3% 16.3%

Iri sh Stock Exchange ISEQ Overa l l 6 428.55 4.2% 35.0%

Johannesburg Stock Exchange FTSE/JSE Al l Share 53 793.74 7.4% 8.2%

Luxembourg Stock Exchange Lux Genera l Price 732.28 2.2% -14.2%

Malta Stock Exchange MSE Share Index 4 339.41 0.1% 31.3%

Muscat Securi ties Market msm30 5 928.15 2.4% -15.0%

NASDAQ OMX Nordic Copenhagen OMXC 730.30 1.3% 18.1%

NASDAQ OMX Nordic Exchange OMX Nordic Eur PI (Al l -Share) 288.53 5.5% 12.8%

NASDAQ OMX Nordic Hels inki OMXH 8 390.06 9.2% 9.8%

NASDAQ OMX Nordic Iceland OMXIPI 1 304.96 7.4% 46.0%

NASDAQ OMX Nordic Stockholm OMXS 508.10 6.8% 11.9%

Oslo Bors OSEBXPR 319.63 5.7% 1.8%

Qatar Stock Exchange QE Al l Share Index 3 087.42 1.1% -9.6%

Saudi Stock Exchange (Tadawul) TASI 7 124.80 -3.8% -29.0%

SIX Swiss Exchange SMI 8 938.65 5.0% 1.1%

Stock Exchange of Mauri tius SEMDEX 1 881.14 -1.5% -11.7%

Tel -Aviv Stock Exchange Genera l 1 212.28 4.6% 7.5%

Wiener Borse SE Price Index 933.94 7.6% 8.0%

Exchange Name of index% change /

last month

% change /

Oct 14

FOCUS December 2015 | Page 27

WFE MEMBERS

Abu Dhabi Securities Exchange

Amman Stock Exchange

Athens Stock Exchange (ATHEX)

Australian Securities Exchange

Bahrain Bourse

BATS Global Markets

Bermuda Stock Exchange

BM&FBOVESPA S.A.

BME Spanish Exchanges

Bolsa de Comercio de Buenos Aires

Bolsa de Comercio de Santiago

Bolsa de Valores de Colombia

Bolsa de Valores de Lima

Bolsa Mexicana de Valores

Borsa İstanbul

Bourse de Casablanca

BSE India Limited

Bursa Malaysia

CBOE Holdings, Inc.

China Financial Futures Exchange

CME Group

Colombo Stock Exchange

Cyprus Stock Exchange

Dalian Commodity Exchange

Deutsche Börse AG

Dubai Financial Market

Egyptian Exchange

Euronext

Hochiminh Stock Exchange

Hong Kong Exchanges and Clearing

Indonesia Stock Exchange

Intercontinental Exchange, Inc.

International Securities Exchange

Irish Stock Exchange

Japan Exchange Group, Inc.

Johannesburg Stock Exchange

Kazakhstan Stock Exchange

Korea Exchange

Luxembourg Stock Exchange

Malta Stock Exchange

Moscow Exchange

Muscat Securities Market

Nasdaq

National Stock Exchange of India Limited

Nigerian Stock Exchange

NZX Limited

Oslo Børs

Philippine Stock Exchange

Qatar Stock Exchange

Saudi Stock Exchange (Tadawul)

Shanghai Futures Exchange

Shanghai Stock Exchange

Shenzhen Stock Exchange

Singapore Exchange

SIX Swiss Exchange

Stock Exchange of Mauritius

Stock Exchange of Thailand

Taipei Exchange

Taiwan Futures Exchange (TAIFEX)

Taiwan Stock Exchange Corp.

Tel-Aviv Stock Exchange

TMX Group Inc.

Wiener Börse AG

Zhengzhou Commodity Exchange