Topic. 2: Analytical assessment of international stock exchanges

Сайт:	Навчально-інформаційний портал НУБіП України
Курс:	International Exchange Activities ☑️
Книга:	Topic. 2: Analytical assessment of international stock exchanges

Надруковано:	Гість-користувач
Дата:	вівторок, 14 жовтня 2025, 23:43

Зміст

1. Географічне зонування міжнародної біржової діяльності
2. Assessment of the international stock trading state
3. Prospects for international stock exchange activity in the context of globalization
4. Presentation

1. Географічне зонування міжнародної біржової діяльності

Globalization processes and integration measures at the international level play an important role today in ensuring the accumulation and redistribution of available commodity and financial resources.

World experience shows that international exchange activity in its modern classical form is an effective mechanism in ensuring the functioning and prospective development of electronic exchange trading in futures contracts - derivatives.

International exchange electronic platforms are sufficiently transparent and open to reduce the impact of destabilizing factors in the processes of exchange pricing, forecasting and management of exchange prices.

In the current conditions, the global economic growth of international exchange trading causes the formation of competitive pricing on exchange commodity or stock electronic platforms.

International exchange activity is an organized or regulated form of trade through the use of Internet trading technology.

Commodity and stock exchanges are now innovative market institutions that are created and operate to meet the needs of society as effective market instruments of international importance.

International exchange operations are aimed at neutralizing destabilizing economic factors in the process of exchange futures and options pricing.

International exchange activity in countries with a market system is undergoing systematic transformational changes associated with the activation of exchange information and analytical support for exchange participants. In this regard, the choice of placing international investments on electronic exchange platforms is expanding annually and covers new types of market participants: from individuals to legal entities in the financial and commodity markets.

Over the past few decades, the level of international exchange trading has reached new records. Trading volumes on international exchanges have dynamically increased from single transactions to daily billion-dollar transactions concluded on electronic exchange platforms.

The development of international exchange activity indicates systematic changes in different geographical zones. Globalization has accelerated the spread of advanced exchange technologies to different continents.

Modern exchange trading on international electronic exchanges remains in a state of dynamic changes in the organizational structure of exchange platforms, exchange technology for trading in derivative contracts, the development of new instruments and new exchange assets.

The main achievement of international exchange activity at the end of the last century was the introduction of electronic exchange trading technology and the development of a clearing system and collateral. Consolidation processes have created new opportunities and strengthened the competitive advantages of international exchange alliances.

Modern international exchange activity is an organized form of trading in exchange-traded futures contracts in different geographical zones.

Geographic zoning of exchange activity in the world took place according to the location of the largest exchange platforms. The classification of international exchange markets by geographical zoning is carried out by leading world-class exchange associations.

International stock exchange activity is now a universalized form of organized trade in various commodity and financial assets, derivative contracts of a standardized form according to the rules of stock exchange trading approved by state regulators.

In modern conditions, international stock exchange trading provides all participants with broad powers regarding investments and price risk management. Today, quite often, funds are invested not only in securities, but also in term contracts - futures and options on futures.

The dramatic growth of international stock exchange trading has ensured the inflow of a large number of international investors in order to transfer free funds at the intercontinental level.

The volume of international stock exchange transactions in the last 25 years has constantly had an annual increase. According to statistical reports of the Futures Industry Association, today about 86 different commodity and financial exchange platforms and stock and commodity exchanges are recognized in the world.

According to the results of 2023, new record figures for the volume of international stock trading are observed - 137.44 billion, which is 63.8% higher than in 2022. At the same time, in 2022, the volume of international stock trading also increased by 34%. Thus, systematic and dynamic growth in futures and options trading volumes has been observed for two years in a row.

The list of the top 10 international exchanges in 2023 includes commodity and stock exchanges from various geographical areas:

- 6 exchanges in Asia;

- 2 exchanges in North America;

- 2 exchanges in South America;

- 1 exchange in Europe.

According to the Futures Industry Association, the first place has been held by the National Stock Exchange of India for several years in a row with a record 83.67 billion transactions.

The second and third places are occupied by two Brazilian exchanges, also with significant trading volumes - 19.31 and 6.51 billion transactions.

The fourth place in 2023 was taken by the Chicago Board of Exchanges with a trading volume of 6.10 billion transactions.

The fifth place was taken by the Korean Stock Exchange, which in 2023 entered the top 10 for the first time in the last few years with a trading volume of 1.67 billion transactions.

The sixth, seventh and eighth places were given to the Chinese commodity and financial exchanges, the ninth place to one European exchange, and the tenth to the Turkish exchange.

The largest increase was recorded on the Brazilian stock exchange – 2186%, and the largest decrease – on the Chinese Zhengzhou stock exchange – (-32.8%).

Statistical reports of the Futures Industry Association indicate the growing role of Asian exchanges in shaping modern trends in the international stock market. To some extent, this trend is caused by global military conflicts and the growing role of more stable Asian stock markets.

In international practice, the following geographical zones are most often found, which are used to group stock market activity:

- Asian stock market region or Asia-Pacific;

- North America;

- South America;

- European region;

- Other exchanges.

Geographical zoning of international stock trading indicates the dominance of Asian exchanges in recent years.

2. Assessment of the international stock trading state

An assessment of the dynamics of international exchange trading in futures contracts – financial derivatives indicates their dominance in 2023, as in previous years. In 2023, there was an increase in the number of concluded exchange contracts by 68%, which amounted to 125.4 billion transactions.

The securities group experienced the greatest growth, namely by 82% compared to 2022. This situation was achieved due to the growth of exchange trading on the Indian National Stock Exchange. The growth of interest rate derivatives trading in 2023 amounted to 18%. A decrease in trading volumes was observed only in the currency derivative contracts group – by (-10%).

International exchange trading in derivative contracts for commodity assets increased by 21% in 2023. This indicates the instability of the financial sector and increased attention to commodity assets as an investment instrument and as a tool for hedging price risks.

Currently, the group of commodity assets on international exchange markets includes:

- agricultural assets;

- energy resources;

- metals;

- other types.

In 2023, the share of exchange trading in commodity assets, despite quantitative growth, decreased compared to the share of financial assets to 9%. The share of trading in the securities segment was the largest in the last three years - 82%.

3. Prospects for international stock exchange activity in the context of globalization

The current state and prospects for the development of international stock exchange activity are now closely intertwined with global processes in various spheres of public life.

The reports of the World Federation of Stock Exchanges for 2023 (appendices) indicate that international stock exchange activity has undergone significant transformations against the background of key geopolitical events, namely the Israel-Gaza war and the continuation of the war in Ukraine. Despite this, capitalization on international stock exchanges increased by 13.6% in 2023 compared to the previous year.

At the same time, the value of trading on stock exchanges, the number of new listings and international investment flows decreased.

In contrast, international stock exchange trading in derivative contracts has increased significantly, in particular, the largest increases were noted in the group of stock options.

This situation indicates an increase in uncertainties in international commodity and financial markets, which required a significant search for price risk management tools.

The main trends in the development of international exchange activity in the capital market include:

- Growth in global capitalization on world-class stock exchanges by 13 trillion USD in 2023.

- Trading volumes of exchange-traded contracts on stock exchanges in 2023 increased in quantitative equivalent, but decreased in value.

- The average trading volume was at its lowest level in the last three years - at 2776.45 USD/per transaction.

- Non-IPO listings in the Americas and Europe-Middle East-Africa (EMEA) stock exchange regions were minimal in the last three years, while the Asian region (APAC) recorded maximums.

- The number of IPOs in 2023 across all regions was the lowest in recent years at 1,217.

Capital raised through IPOs declined sharply in international markets in 2023 (59.3%). However, in the ARAC and AMEA regions, the reduction was recorded at -43.3% and -86.1%, while in the American region there was an increase of -71.3%.

The Futures Industry Association cites in its reports the following promising areas for the development of international exchange activity:

- growth in the volume of exchange trading in derivative contracts and commodity and financial assets;

- increased demand for exchange instruments in the context of the continuation of the war in Ukraine and the Israel-Gaza war;

- creation of favorable conditions for financial provision with credit resources;

- expansion of the range of services for exchange traders;

- growth in the share of financial derivatives trading in the overall structure of international exchange trading;

- achieving a new record in the volume of international exchange trading;

- implementation of artificial intelligence in exchange procedures;

- tokenization of exchange instruments and the spread of new innovative solutions.

The problems that still face exchange participants, as in previous periods, include:

- overcoming wars and military conflicts and establishing integration relationships of an organizational and regulatory nature;

- strengthening the fight against the main factors of instability at the global and national levels;

- liberalization and unification of the regulatory framework at the global level;

- improving the ways of accumulation and transfer of free capital.

The analytical report of the Futures Trading Association indicates that in 2023 the main problems faced by exchange trading participants were problems related to technological and organizational functions. The operational work of international exchange participants was focused against the backdrop of recent instability and increased control by global politicians.