The World Federation of Exchanges has published a paper introducing the Listing Stringency Index, a standardised, survey-based composite framework designed to quantify and benchmark the relative stringency of initial public offering listing regimes across jurisdictions. Using data from WFE members, the index measures requirements across nine regulatory dimensions and is intended to help track cross-market differences and directional changes, including tightening or relaxation linked to ESG-related developments and small and medium-sized enterprise access priorities. The paper reports an average Listing Stringency Index score of 58.67 across exchanges, with scores ranging from 33.33 to 88.89, where higher scores indicate more stringent IPO listing requirements. IPO fees and disclosure requirements are identified as the most widely enforced dimensions at 92.5% and 81.25% respectively, while financial criteria at 31.25% and voting rights at 25% are the least commonly applied. Over the past 15 years, 20 exchanges have implemented more stringent rules, particularly in ESG disclosure and corporate governance, while seven have relaxed requirements mainly by reducing minimum share price and free float thresholds; the cross-exchange analysis links higher stringency with larger IPOs but not IPO frequency, while regulatory relaxation is associated with increases in both IPO participation and offering size.
World Federation of Exchanges 2026-02-04
World Federation of Exchanges publishes Listing Stringency Index to compare IPO listing requirements across markets
The World Federation of Exchanges launched the Listing Stringency Index to benchmark IPO listing regimes using member data. It shows IPO fees and disclosure requirements are most enforced, while financial criteria and voting rights are less common. Recent trends indicate increased stringency in ESG disclosure and corporate governance, with relaxed requirements linked to higher IPO participation and offering size.