The market cap of exchanges in emerging markets should exceed the value of U.S. exchanges as soon as 2030, according to Goldman Sachs economists. They have further calculated that as of 2022, the Americas accounted for only 27.4% of equity trading volumes, which is already less than half of the share of APAC’s volumes. 

India is forecast to achieve the largest increase in share of global market cap rising from 2.5-3% in 2022 to 12% by 2075. By contrast, the rest of the emerging markets’ share will grow from 13.5% in 2022 to 30% in 2075.

This increase will in part be bolstered by the region’s financial technology revenues. The Boston Consulting Group (BCG) predicts that by 2030, the Asia-Pacific will become the world’s largest fintech market, outpacing the U.S.. With nearly $4 trillion in financial services revenue pools, the historically underpenetrated market is projected to achieve a compound annual growth rate (CAGR) of 27%. BCG claims, “This growth will be driven primarily by Emerging APAC (e.g. China, India, and Indonesia), as it has the largest fintechs, voluminous underbanked populations, a high number of small and medium-sized enterprises, and a rising tech-savvy youth and middle class.”

This surge in activity will inevitably lead to a growth in trading volumes for regulated stock exchanges as companies seek to raise capital. APAC-based exchanges need to prepare as a result, ensuring their systems are resilient enough to meet increasing demand. How should they best tackle this challenge?