World Federation of Exchanges urges stronger oversight and harmonised transparency standards for fast-growing private markets

The World Federation of Exchanges (WFE) published a paper, Strengthening Private Markets, calling for enhanced oversight, better data and closer supervisory scrutiny as private investment markets expand rapidly. It argues that the pace and scale of growth, supported by policy incentives, is raising risks to market integrity, retail investor protection and potentially financial stability, and calls for greater global policy focus and a fairer balance of incentives between public and private markets. The paper highlights systemic risk from increased leverage, opaque valuations and the bundling of private credit with equity, and warns that weaker disclosure, high fees and illiquidity could disadvantage retail investors as private assets broaden their target audience. It also flags the emergence of secondary trading platforms for private assets as a potential threat to public market pricing and integrity, recommending supervisory reporting of such trades and potential disclosure to the public. WFE’s recommendations include developing harmonised transparency standards across public and private markets, reviewing regulatory and tax regimes that favour private capital, assessing risks from leverage combined with illiquid secondary trading, and promoting public listings by ensuring a level playing field and reducing unnecessary burdens.