The World Federation of Exchanges (WFE) has introduced a novel global benchmark, the Listing Stringency Index (LSI), designed to quantify the difficulty for companies to list on stock exchanges worldwide. Published in a February 2026 policy paper, the index measures and compares IPO listing requirements across 40 WFE member exchanges, revealing significant disparities in accessibility and regulatory design across different regions and economic blocs.
The LSI scores exchanges from 0 to 100 across nine regulatory dimensions: financial thresholds, voting rights, IPO fees, share price and distribution, corporate governance, disclosure, operational requirements, regulatory approvals, and tax incentives. The average score across all surveyed exchanges is 58.67, with a range from 33.33 (least stringent) to 88.89 (most restrictive), indicating most exchanges adopt a moderately comprehensive framework.
The analysis identifies clear patterns in regulatory priorities. IPO fees are imposed by 92.5% of exchanges, and disclosure obligations by 81.25%, making them nearly universal. In contrast, financial requirements like minimum revenue thresholds are far less common (31.25% average), and voting rights restrictions are the least applied (25% average). This reflects a general preference for issuer flexibility, especially in early-stage or high-growth markets.
The index highlights sharp regional and economic divides. Exchanges in advanced economies cluster in a narrower LSI range (55-75), suggesting harmonized frameworks. Emerging and Developing Economies (EMDEs) display a much wider spread, from highly permissive to extremely stringent regimes, pointing to differing policy priorities like SME access and investor protection. Regionally, APAC exchanges record the highest median LSI scores, emphasizing governance and disclosure, while the Americas show the most compact distribution.
One of the key findings is the relationship between stringency and IPO outcomes. The analysis shows a statistically significant correlation (Pearson coefficient of 0.47) between higher LSI scores and larger average IPO size. However, the link between stringency and IPO frequency is positive but weaker and not statistically significant. This suggests stricter regimes attract fewer but larger issuers, while looser frameworks may broaden access without necessarily reducing deal size.
The paper also tracks regulatory evolution, noting that over the past 15 years, 20 of the 40 exchanges surveyed tightened requirements (particularly around ESG and governance), while seven relaxed rules, often to improve market access for smaller firms. Supporting WFE studies indicate such relaxations are associated with significant increases in both IPO participation and capital raised.
In a related development, SIX Group released a white paper on February 4, 2026, analyzing the merits of listing on the SIX Swiss Exchange versus a US IPO. The paper challenges the perceived superiority of US markets for tech firms, positioning Switzerland as a robust alternative. It argues that companies can access US institutional investors via Rule 144A offerings without SEC registration. The analysis notes Switzerland's substantial domestic investor base (approx. USD 207 billion) and highlights that European markets often offer narrower bid-ask spreads, enhancing trading efficiency.
Furthermore, the SIX paper emphasizes cost efficiency, with Swiss IPO underwriting fees ranging from 2% to 5% of gross proceeds, generally lower than the US average of 4% to 7%. Switzerland's principles-based regulatory environment is presented as a more straightforward and less risky path to going public, particularly for mid-sized international firms.
The WFE stresses that the LSI is a benchmarking tool, not a rulebook or a judgment on regulatory quality. It aims to provide a data-driven foundation for informed policy dialogue, allowing regulators and exchanges to assess their positioning and understand how listing rules affect market inclusivity and capital formation.
