World Exchanges Launch Global Financial Education & Literacy Initiative
London, November 16
• Thirty WFE exchange and clearing house members join new WFE Financial Education & Literacy Study Group
• Japan Exchange Group to lead WFE Financial Education & Literacy Project
• FESG to facilitate global sharing of financial education best practice
• Study group set to be largest of WFE’s working groups
The World Federation of Exchanges, which represents public markets around the world, will start a new global industry initiative to promote financial education and entrepreneurial skills among school children and university students, following an overwhelming response from its members to join a new study group on the topic.
Thirty exchange and clearing house members of WFE have joined up to date.
The Financial Education & Literacy Study Group working under the aegis of the WFE’s Working Committee and led by Japan Exchange Group, Inc. (JPX) will extend the reach of current WFE, JPX and other exchange and clearing member initiatives and programmes.
The group will also facilitate the sharing of exchanges’ expertise and experiences in the area of financial education for young people around the world.
The group, founded and chaired by JPX, is putting together an Action Plan in a first step to promote the hands-on and active acquisition of financial and entrepreneurial knowledge and skills by school pupils, college and university students.
JPX will share the valuable experiences and insights it has gained using stock-trading games to convey to school pupils the importance of investment in stocks and shares. JPX will also share with other WFE exchanges its experience with the "JPX Entrepreneur Program", which encourages university students to think through business concepts and learn the practical skills involved in setting up a company. The group will share information about member efforts and projects globally.
The study group will review the range of financial education programs already in use by exchanges around the world and will help exchanges set up and run similar initiatives. It will also consider ways to promote wider recognition of excellence and achievements among programme participants. The FESG will also aim to build a global network of like-minded organizations and individuals engaged in financial education and nurturing a culture of entrepreneurship.
Since the 2008 financial crisis, global leaders have united in calling for better financial education. The G20 and the OECD are backing moves to improve financial literacy to encourage better-informed financial activity and, as a result, financial educators are likely to be called upon to increase their efforts as financial literacy gains importance in national curricula and education policies.
Urs Ruegsegger, Group CEO SIX and chairman of the WFE’s Working Committee, welcomed the launch of the study group.
“The response of WFE members to JPX’s initiative has been heartening and demonstrates the interest of global exchanges in taking forward the financial education cause. The new group marks a further extension of the breadth and reach of our general sustainable finance work. Following the announcement of our enhanced sustainability guidance last week, this new initiative shows again the WFE remains front and centre in the global financial sustainability debate,” Ruegsegger said.
“JPX and other WFE members have been pioneers in the field of financial education for young people,’’ WFE CEO Nandini Sukumar said.
‘’For regulated markets, financial literacy and investor education is a core mission and goes hand in hand with efforts to promote transparency and trust in markets. There is an abundance of best practice in this field that WFE members can share with clearing houses and fellow exchanges around the world. The WFE – with its global and diverse membership is the place where public markets globally will come together to share these valuable lessons and so further the promotion of financial literacy and education,” Sukumar added.
JPX Group CEO Akira Kiyota said the need for the Financial Education & Literacy Study Group was clear as financial markets increasingly transcend national borders.
“Today, foreign investors account for 60% to 70% of trading at TSE and OSE, and we see more cross-market ETF listings. In Asia, the Shanghai-Hong Kong Stock Connect and the ASEAN Trading Link are also proof of progress toward markets and trading beyond borders. With capital markets becoming increasingly globalized and borderless, we recognize the need for a cross-border group to align and discuss the direction of financial education, and will lead the study group to prepare our future generations for active participation in capital markets," Kiyota said.
The following exchange members and associates have indicated their interest in the study group on financial education and entrepreneur programs for students (in alphabetical order):
Australian Securities Exchanges (Australia) Irish Stock Exchange (Ireland)
Bermuda Stock Exchange (Bermuda) Japan Exchange Group (Japan)
BM&FBOVESPA (Brazil) Korea Exchange (South Korea)
Bolsa de Valores de Colombia (Colombia) Moscow Exchange (Russia)
Bolsa Mexicana de Valores (Mexico) Nasdaq (US and Europe)
Bursa Malaysia (Malaysia) Philippine Stock Exchange (Philippines)
CBOE Holdings (US) Shanghai Stock Exchange (China)
China Financial Futures Exchange (China) Shenzhen Stock Exchange (China)
Colombo Stock Exchange (Sri Lanka) Stock Exchange of Mauritius (Mauritius)
The Depository Trust & Clearing Corporation (US) Stock Exchange of Thailand (Thailand)
Deutsche Börse (Germany) Taipei Exchange (Taiwan)
The Egyptian Exchange (Egypt) Taiwan Futures Exchange (Taiwan)
Hochiminh Stock Exchange (Vietnam) Taiwan Stock Exchange (Taiwan)
Indonesia Stock Exchange (Indonesia) Tel Aviv Stock Exchange (Israel)
Intercontinental Exchange, Inc. (US) TMX Group (Canada)
The World Federation of Exchanges is the global trade association for exchanges and clearing houses. The WFE represents 64 public stock, futures and options exchanges, as well as CCPs, including those not affiliated with a single exchange. WFE promotes the development of fair, efficient and transparent markets. We work with policy makers, regulators and standard-setters around the world to support the development of effective rules and standards for exchanges and market participants.
Over 44,000 companies - representing a total market capitalisation of US $64 trillion, trading value of US $76 trillion and equivalent to more than 75% of global GDP - list on WFE member exchanges.
For further information please contact:
Head of Communications
The World Federation of Exchanges Ltd
125 Old Broad Street
London EC2N 1AR – United Kingdom
Tel: +44 (0) 20 7151 4158
Mob: +44 (0) 7887 950 933