Global Exchange Body Pushes for Sweeping Tax Reforms to Boost Investment

A leading financial industry group is urging governments worldwide to overhaul tax systems that it says are stifling investment and economic growth.

The World Federation of Exchanges has published a comprehensive blueprint calling for elimination of harmful taxes and simplification of reporting requirements to create more efficient global markets.

The organization, which represents exchanges and clearing houses globally, argues that current tax regimes discourage public listings, reduce market liquidity, and create unnecessary barriers for investors. Their recommendations include removing taxes on stock listings, particularly for small and medium enterprises, and eliminating financial transaction taxes that increase trading costs.

“Capital markets are engines of innovation, job creation, and prosperity, but poorly designed tax regimes are holding them back,” said Nandini Sukumar, CEO of the WFE. She called for coordinated government action to remove these barriers and unlock the potential of global markets.

The proposal also suggests tax incentives for long-term savings, simplified reporting for cross-border investments, and neutral tax treatment between cleared and non-cleared trades. The group emphasizes that these changes would particularly benefit emerging markets by encouraging more foreign investment.

Richard Metcalfe, the WFE’s Head of Regulatory Affairs, noted that excessive taxation has contributed significantly to the decline in public listings in recent years. He urged policymakers to reform what he called “outdated and counterproductive” tax systems to encourage companies to go public and foster vibrant investment culture.

The recommendations come as many economies seek ways to stimulate growth without increasing public debt. By reducing friction in capital markets, the federation believes governments can channel more investment into business expansion and infrastructure projects that benefit the broader economy.