WFE Calls for Overhaul of Tax Systems to Boost Global Investment and Market Growth
The World Federation of Exchanges (WFE), the global body representing exchanges and clearing houses, has released a paper advocating for sweeping reforms to tax regimes to better support investment, savings, and economic development.
The paper presents a detailed framework for creating a future-ready tax system that lowers barriers to entry, promotes long-term capital formation, and makes markets more attractive for both issuers and investors. According to the WFE, outdated and burdensome tax rules continue to undermine the role of capital markets in driving innovation, growth, and prosperity.
Among its recommendations, the WFE highlights the need for tax incentives to encourage pension savings and retail investment, along with lower withholding taxes on dividends. It calls for the removal of levies on public listings to ease access for companies, particularly small and medium enterprises, while urging policymakers to allow tax deductions for listing and IPO-related expenses.
The paper also stresses the importance of tax neutrality in clearing activities, noting that taxes in some jurisdictions undermine financial stability by discouraging central clearing. Simplifying complex reporting requirements, harmonising rules across borders, and removing double taxation barriers were also identified as critical steps to encourage greater investor participation, especially in emerging markets.
The WFE reiterated its opposition to financial transaction taxes, warning that such levies increase costs, reduce liquidity, and ultimately fail to deliver policy goals.
Nandini Sukumar, CEO of the WFE, said poorly designed tax systems are stifling capital markets. “Capital markets are engines of innovation, job creation, and prosperity, but burdensome tax regimes are holding them back. Our proposed reforms would unlock more capital for business expansion, infrastructure, and inclusive market participation,” she explained.
Richard Metcalfe, Head of Regulatory Affairs at the WFE, added that excessive tax burdens are contributing to the global decline in public listings. “Reforming outdated and counterproductive tax systems can encourage companies to list and foster a vibrant investment culture that rewards risk and innovation,” he said.
The WFE’s call is expected to feed into ongoing policy debates as governments worldwide search for ways to attract more investment, enhance competitiveness, and stimulate sustainable growth through capital markets.
