Ever wondered how many stock exchanges are there across the globe? Which one of those are the biggest and where are they located? Are you trying to decide which stock market or stock markets are the right ones for you to invest in? If the thought of investing in the stock market scares you, you aren’t alone! False promises and highly public stories of investors striking it rich or losing everything skew perceptions of the reality of the average investor. By understanding a little more about the stock market – and how the stock market works – you’ll likely find it isn’t as scary as you may think and that it’s a viable investment. To begin with, the World Federation of Exchanges (WFE) regulates 52 Stock Exchanges across the globe promoting regulatory standards. Learning more about these stock exchanges can be quite revealing regarding global economic power and wealth distribution. While some stock exchanges have been traditionally strong, the dynamic nature of the industry has allowed others to grow rapidly. Below you can find the list of 20 largest stock exchanges in the world that offer huge financial opportunities, sorted on the basis of Domestic Market Capitalization:
20. BM&F Bovespa – $824 billion
Largest Exchange in Latin America and second largest exchange in the Western hemisphere, BM&F Bovespa is a Brazilian-owned company that has had its shares (BVMF3) traded on the Novo Mercado since 2008. Formed through the integration of the Brazilian Mercantile & Futures Exchange (BM&F) and the São Paulo Stock Exchange (Bovespa), BM&F Bovespa now also has offices in New York City, Shanghai, and London.
19. Taiwan Stock Exchange – $861 billion
Committed to positioning itself as the most cost-efficient and liquid market in the Asia region, The Taiwan Stock Exchange Corporation (TWSE), located in Taipei, Taiwan was established in 1961 and began operating as a stock exchange on 9 February 1962. Its aim is to improve operational efficiency in order to enhance core competitiveness and ensure continued development of the Taiwan securities market.
18. BME Spanish Exchanges – $942 billion
Currently one of the four major European stock exchange and market operators, BME is a stock market operator and the heir of centuries of cultural and financial heritage, in which millions of Spanish and foreign investors place their trust. The establishment of the Spanish Stock Exchange allows firms, investors and intermediaries, to trade within a market where the products are continuously changing and expanding, with the security of a safe and flexible environment.
17. JSE Limited – $951 billion
The only African stock exchange to make it into the top 20 is JSE Limited, which has its headquarters in Johannesburg, South Africa. JSE Limited is the largest stock exchange in Africa formed in 1887 during the first South African gold rush. It is the market of choice for local and international investors looking to gain exposure to the leading capital markets in South Africa and the broader African continent.
16. NASDAQ OMX Nordic Exchange – $ 1.21 trillion
A Swedo-Finnish financial services company, OMX AB was formed in 2003 through a merger between OM AB and HEX plc and is a part of the NASDAQ OMX Group since February 2008. It has two divisions, OMX Exchanges, which operates eight stock exchanges mainly in the Nordic and Baltic countries, and OMX Technology, which develops and markets systems for financial transactions used by OMX Exchanges, as well as by other stock exchanges. The company is a world leader in financial instruments trading systems.
15. Korea Exchange – $1.25 trillion
The financial market is booming in South Korea, thanks to the nation’s vibrant and advanced economy. Korea Exchange (KRX) is the sole securities exchange operator in South Korea. It is headquartered in Busan, and has an office for cash markets and market oversight in Seoul.
14. Australian Securities Exchange ASX – $1.27 trillion
ASX, headquartered in Sydney, Australia, is one of the world’s leading financial market exchanges. Created through a merger of the Australian Stock Exchange and Sydney Futures Exchange, it offers a full suite of services, including listings, trading, clearing and settlement, across a comprehensive range of asset classes.
13. SIX Swiss Exchange – $1.52 trillion
Providing an ideal listing location for companies of every origin, size and sector, SIX Swiss Exchange, based in Zurich, multiplies the locational advantages of the Swiss financial marketplace with first-rate services in the areas of securities trading, clearing and settlement, as well as financial market information and payment transactions on a global scale. It was the first stock exchange in the world to incorporate a fully automated trading, clearing and settlement system in 1995.
12. National Stock Exchange of India – $1.64 trillion
Playing a catalytic role in reforming the Indian securities market in terms of microstructure, market practices and trading volumes, The National Stock Exchange (NSE) is India’s leading stock exchange covering various cities and towns across the country. NSE was set up by leading institutions to provide a modern, fully automated screen-based trading system with national reach. NSE has a presence in all the major cities of the country. NSE’s flagship index, the CNX Nifty, the 50 stock index, is used extensively by investors in India and around the world as a barometer of the Indian capital markets.
11. Bombay Stock Exchange – $1.68 trillion
What is now popularly known as BSE was established as “The Native Share & Stock Brokers’ Association” in 1875. The Bombay Stock Exchange (BSE) is Asia’s oldest stock exchange. Based in Mumbai, India, BSE was established in 1875 as the Native Share & Stock Brokers’ Association. Drawing from its rich past and its equally robust performance in the recent times, BSE will continue to remain an icon in the Indian capital market
10. Deutsche Börse – $1.76 trillion
The powerful German economy and its firms are largely influenced by what goes on at the Frankfurt stock exchange. Deutsche Börse AG or the Deutsche Börse Group, headquartered in Frankfurt, is a marketplace organizer for the trading of shares and other securities. It is also a transaction services provider. It gives companies and investors access to global capital markets.
9. TMX Group – $1.94 trillion
TMX Group, formerly known as TSX, is a Toronto-based exchange operator of cash and derivative markets for multiple asset classes including equities, fixed income and energy. It owns and operates the Toronto Stock Exchange and TSX Venture Exchange.
8. Shenzhen Stock Exchange – $2.28 trillion
With a mission to develop China’s multi-tier capital market system, the Shenzhen Stock Exchange (SZSE) was established on 1st December 1990. The rise of the Chinese economy has allowed the Shanghai-based exchange to penetrate the top ten. It gives full support to development in small and medium businesses and implementation of the national strategy of independent innovation.
7. Euronext – $3.32 trillion
Playing a key role at the heart of Europe’s capital and financial markets, Euronext is the pan-European financing centre operating regulated markets in Belgium, France, the Netherlands, Portugal and the UK, all of which are connected via a single trading platform with a harmonised regulatory framework.
6. Hong Kong Stock Exchange – $3.32 trillion
A frontline regulator of the central securities and derivatives marketplace in Hong Kong, HKEX operates the securities and derivatives markets and their related clearing houses. the Hong Kong Stock Exchange is propelled by the region’s highly developed financial services sector which is backed by trade, tourism, logistics and professional services besides the growing presence of mainland Chinese companies.
5. Shanghai Stock Exchange – $3.99 trillion
A non-profit organization run by the China Securities Regulatory Commission (CSRC), the Shanghai Stock Exchange is the largest stock exchanges in Mainland China. In contrast to the Hong Kong Stock Exchange, the Shanghai Stock Exchange is still not entirely open to foreign investors due to tight capital account controls exercised by the Chinese mainland authorities.
4. Japan Exchange Group – $4.48 trillion
Japan Exchange Group Inc is the holding company created through the merger of Tokyo Stock Exchange Group, Inc and Osaka Securities Exchange Co., Ltd. The group provides and operates a marketplace for the trading of equities, futures, and options. The Group manages the trading, as well as administers listed stocks and registered members.
3. London Stock Exchange Group – $6. 19 trillion
Sitting at the heart of the world’s financial community, the London Stock Exchange Group plc is a British-based stock exchange and financial information company. It is headquartered in London, United Kingdom. It owns the Borsa Italiana, Millennium IT, Russell Investments and the London Stock Exchange.
2. NASDAQ – $6.83 trillion
Achieving groundbreaking progress, and empowering people to think differently and businesses to compete more effectively, NASDAQ transformed the world’s capital markets by engineering precedent-setting acquisitions. The term “NASDAQ” is also used to refer to the Nasdaq Composite, an index of more than 3,000 stocks listed on the NASDAQ exchange that includes the world’s foremost technology and biotech giants such as Apple, Google, Microsoft, Oracle, Amazon, Intel and Amgen.
1. New York Stock Exchange – $19.22 trillion
With a market capitalisation of more than US$19 trillion, the New York Stock Exchange (NYSE) is the leading stock exchange in the world. Founded on 17 May 1792 when 24 stockbrokers signed the Buttonwood Agreement on Wall Street in New York City, the NYSE is owned by Intercontinental Exchange and is regulated by the Securities and Exchange Commission. The NYSE is currently the world’s largest IPO provider with major corporate listings including Bank of America, Ford Motor Co and Twitter Inc. among others.