Stock exchanges are one of the most important parts of our financial world. The strength of a country’s stock exchange is seen as a crucial indicator of the health of an economy. By strength here, we mean the performance, as well as the size of the stock exchange. This means, if a country’s stock market is on a bull run, there are good chances that the economy is performing well and the size of the economy is also massive. Discussed in this article, are the 10 largest stock exchanges in the world.
10 Largest Stock Exchanges In The World
Our list of the 10 largest stock exchanges is based on the market cap of the companies (as of April 2020) listed on that exchange. Following are the largest stock exchanges in the world:
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TMX Group ($1.97 trillion)
TMX Group is a Toronto-based financial services company that operates Canadian exchanges. It is known for its stock exchanges, including the Toronto Stock Exchange (TSX) and TSX Venture Exchange (TSXV). The origin of TMX Group can be attributed to the Toronto Stock Exchange (TSX), which was founded in 1861. In June 2008, TSX officially changed its name to the TMX Group. TMX Group is headquartered in Toronto and has offices across Canada.
Saudi Stock Exchange ($2.15 trillion)
The Saudi Stock Exchange is popularly known as Tadawul. It was formed in 2007 as a joint stock company. Tadawul is the only stock exchange in the country and the main exchange among the GCC (Gulf Cooperation Council) countries. More than 200 companies are listed on this exchange. Nasdaq and Tadawul signed an agreement at the end of 2017 to upgrade Tadawul’s post-trade technology infrastructure.
London Stock Exchange ($3.13 trillion)
Founded in 1698, it was the biggest stock exchange in the world until World War I. This stock exchange is controlled by the London Stock Exchange Group. The London Stock Exchange Group was formed in October 2007 after the merger of the London Stock Exchange with the Milan Stock Exchange. More than 3,000 companies are listed on LSE.
Shenzhen Stock Exchange ($3.49 trillion)
Founded in 1990, it is home to more than 2,000 companies. This exchange is located in the Silicon Valley of China, and trades only in the Chinese Yuan currency. It is a self-regulated legal entity that works under the supervision of the CSRC (China Securities Regulatory Commission). Also known as SZSE, its skyscraper building, which is 806 feet tall and has 49 floors, is located in the Futian District.
Euronext ($3.85 trillion)
Euronext originated from the Amsterdam Stock Exchange, and is a multiple state stock exchange. It was founded in 2000 with the merger of Amsterdam, Paris and Brussels exchanges. The European Stock Exchange (or Euronext) is located in Amsterdam, Netherlands, and operates in Portugal, Belgium, France and Ireland. With over 1,300 companies listed, it is the biggest exchange in Europe.
Hong Kong Exchange ($4.48 trillion)
It was established in 1981, and has more than 2,300 companies listed on it. More than 50% of the companies listed on the Hong Kong Exchange reportedly operate in Mainland China. This exchange is home to companies, including AIA, HSBC Holdings, PetroChina, etc. It is the fastest growing stock exchange in Asia. Also known as SEHK, it is owned by the Hong Kong Exchanges and Clearing Limited (HKEX).
Shanghai Stock Exchange ($4.92 trillion)
It was established in 1866, but was modernized only in the mid-1990s. More than 1,100 companies trade on this exchange. Also, it lists two different shares types – A and B. As per the exchange’s official website, Shares “B” trade in U.S. dollars, while “A” trades in the Chinese Yuan currency. It is one of the two stock exchanges that operates independently in mainland China (the other being the Shenzhen Stock Exchange).
The Tokyo Stock Exchange ($5.37 trillion)
Established in 1878, this exchange is among the top cosmopolitan centers of the world. With more than 2,400 companies listed, the TSE is home to many big companies and brands, such as Sony, Toyota and Honda. Along with TSE, this exchange is also known as Tosho or TYO. This exchange is owned by the Japan Exchange Group (JPX), which is also listed on TSE.
NASDAQ ($12.98 trillion)
Even though this exchange was established in 1971, it has quickly grown to be the second-biggest exchange. This exchange boasts of some of the biggest tech companies, including Apple, Facebook, Microsoft and more. The listing and governance requirements of NASDAQ are very similar to that of the NYSE. When it was established, it introduced the computerized trading system as an alternative to the inefficient “specialist” system.
NYSE ($28.19 trillion)
The NYSE (New York Stock Exchange) is the world’s biggest equities exchange. It was established in 1792, and at the time, it was the only exchange in all of North America. NYSE gained the title of the biggest stock exchange worldwide immediately after the First World War. Intercontinental Exchange (ICE) is the parent company of the NYSE. This U.S. exchange accounts for over 40% of the total market capitalization of the stock market.