Global investors continue to place a premium on markets with clear rules, robust corporate governance and fair, orderly trading environments, according to the World Federation of Exchanges (WFE). As international interest in the Korean stock market continues to grow, the organization said that investor confidence and an environment that supports long-term investment are among the defining characteristics of successful public markets.
In an interview with Seoul Economic Daily on the 9th, Nandini Sukumar, CEO of the World Federation of Exchanges (WFE), said, "Competition for innovation among exchanges is intensifying, but what remains unchanged is that investors value markets with efficient market infrastructure, clear rules, and sound governance." She added, "Trust in a market is built over a long period of time through the consistent application of rules and a reliable market operating framework." Founded in 1961, the WFE is the leading global industry body for exchanges, whose members include regulated exchanges from countries around the world.
Sukumar advised that as South Korea pursues extended trading hours, it should consider not only broader accessibility but also market quality. "The interest in extending trading hours reflects the reality that many investors operate across borders and time zones," she said. "The key question is whether market quality can be maintained even as trading hours lengthen, while also considering the impact on investors and issuers."
On the introduction of a T+1 settlement cycle, she stressed that sufficient preparation by market participants must be a prerequisite. "If market participants are adequately prepared, T+1 can reduce counterparty exposure and improve the movement of capital within the financial system," Sukumar said.
Sukumar emphasized that, to enhance the competitiveness of South Korea's stock market, trust in the market, corporate governance, and a long-term investment environment matter as much as infrastructure reform. "Countries take different approaches to reform, but successful markets share common features: trust in the market framework, effective corporate governance at listed companies, and an environment that supports long-term investment," she said.
The WFE is a global body representing more than 250 exchanges and market infrastructure institutions, such as central counterparties (CCPs), worldwide. In March this year, the WFE identified as key agenda items the role and purpose of market infrastructure; extended trading hours and 24-hour markets; investor protection and market participation; and tokenization, virtual assets, and market design. These align with moves by exchanges around the world to accelerate infrastructure reform aimed at improving market accessibility and reducing the time and risk involved in trading and settlement, in order to attract global investors.
