Celent has released a new report titled The Global Exchange Landscape: Opportunities Amidst Challenges written by Arin Ray, an Analyst with Celent’s Securities & Investments practice.

Regulatory and market structure changes are shaking up traditional arrangements in capital markets resulting in realignments of roles and importance of key participants. To remain competitive in the dynamic environment, exchanges need to stay on top of market evolution and adapt their offerings and value proposition in accordance with the changing situation.

Uncertain economic conditions are suppressing listing and trading activities at exchanges. Growth in multiasset and passive investment preferences is creating demand for new product and asset classes. The sell side’s role is shrinking in market-making, forcing them to focus on execution business. The buy side is rising to fill the void by becoming liquidity providers, and their investment strategies and connectivity needs are growing.

Corporates are looking for alternative fund-raising avenues. Increasing penetration and sophistication of local markets, expansion in product and market coverage, improving data offerings beyond raw pricing information, developing advanced technology solutions beyond traditional connectivity tools, and expanding beyond national boundaries present opportunities for revenue growth.

“Derivative reforms are changing the capital calculus favoring centrally cleared and exchange traded instruments,” commented Ray.

“Most exchange groups are actively working to capitalize on this opportunity by developing new trading, clearing and collateral management solutions,” he added.