- Stock exchange leaders call for harmonious regulations for cross-border investment while maintaining flexibility to foster innovation and attract listings, especially for SMEs.
- ESG should act as a market stabilizer: Mandatory ESG frameworks—like Bhutan’s Gross National Happiness metrics and Mexico’s Sustainability Index—are critical to reducing volatility, but require standardization, education, and enforcement to scale globally.
- FinTech and Inclusion drive growth: Emerging markets leverage mobile trading and digital tools to democratize access, but must pair innovation with robust safeguards to ensure market integrity and investor confidence.
The world’s stock exchange chiefs are at a crossroads. As geopolitical tensions, regulatory disparities, and climate risks reshape financial markets, exchange leaders gathered at AIM Congress 2025 to forge a path toward integration, resilience, and sustainable growth.
From Oman’s pioneering private-sector listings to Bhutan’s Gross National Happiness-aligned ESG framework, the discussions revealed a shared urgency: to modernize markets without sacrificing stability, and to bridge divides—both regional and regulatory—that hinder global capital flows.
Regulatory revolution: Harmonization vs. Flexibility
The question of balancing between harmonization and deregulation took center stage with Haitham Al Salmi, CEO of the Muscat Stock Exchange, showcasing Oman’s bold move to list private companies after 36 years of exclusivity. “Visibility breeds confidence,” he argued, though he acknowledged the challenge of competing with larger GCC markets.
But fragmentation remains a hurdle. Jalil Tarif of the Union of Arab Securities Authorities called for unified Arab market standards, warning that disjointed rules stifle cross-border investment.
Meanwhile, Ivana Gažić of the Zagreb Stock Exchange and Petr Koblic of Prague debated deregulation’s double-edged sword: while it attracts foreign capital, it can also erode transparency.
Overall, the leaders advocated for striking a balance—flexible enough to innovate, and robust enough to protect market players.
Taming volatility: ESG as a stabilizing force
For Dorji Phuntsho, CEO of Bhutan’s Royal Securities Exchange, ESG isn’t just a metric—it’s a philosophy. By mandating ESG disclosures tied to Gross National Happiness, Bhutan aims to curb speculation and anchor long-term investing. “Sustainability isn’t optional; it’s existential,” he asserted.
Yet adoption lags where frameworks are weak. Fadi Kanso of the Arab Federation of Capital Markets cited “a lack of standards and enforcement” as barriers, while Miguel Monteiro of Cabo Verde stressed education: “Companies won’t report what they don’t understand.” Mexico’s BIVA, however, offered a blueprint: its Sustainability Index and nationwide outreach have made ESG investable.
Key Takeaway: ESG’s potential to reduce volatility hinges on standardization, education, and enforceable mandates.
FinTech and Inclusion: Democratizing Market Access
Emerging markets are leapfrogging legacy systems. Bob Karina of the Rwanda Stock Exchange highlighted mobile trading’s transformative power: “When herders can trade from their phones, markets grow from the ground up.” Hassan Dudde of Somalia echoed this, advocating mutual recognition agreements to unlock cross-border capital.
But innovation must serve stability. Hayk Yeganyan of Armenia noted that smaller firms struggle with transparency demands, while Noorbaan Fahmy of the Maldives stressed IOSCO alignment as a credibility lifeline.
Key Takeaway: Technology can bridge gaps—if paired with guardrails to protect integrity.
Cross-border listings in stock exchange: Breaking down barriers
From tax incentives to SME-friendly rules, stock exchanges are competing for listings. Lukas Bonko of Bratislava touted EU alignment as a magnet, while Ruslan Khalilov of Baku pushed for streamlined SME processes. Ivan Shteriev of Macedonia made the case for regional integration: “Harmonized regulations are the glue for cross-border trading.”
Yet challenges persist. Khalilov warned that red tape still stifles growth, and Shteriev acknowledged the “complexity” of Balkan integration.
Key Takeaway: Simplicity and synergy are the keys to attracting listings in a fragmented world. The summit closed with a clear consensus:
- Harmonize to compete: Disparate rules help no one. Regional alliances like the Arab Federation must lead.
- Embed ESG deeply: From Bhutan’s happiness metrics to Mexico’s indices, sustainability drives stability.
- Innovate inclusively: FinTech can democratize access—but only if risks are managed.
As Fadi Kanso put it, “The future belongs to exchanges that can balance growth with guardrails.” For global markets, that future starts now.
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