Market Infrastructures: Evolution And Outlook, By Andre Cappon, Yanlin Zhu, Kevin Mellyn, Stephan Mignot, Guy Manuel, Marina Alcalde, The CBM Group, New York NY, January 16 2021 Date
20/01/2021
Exchanges, and more broadly “market infrastructures”, are the critical plumbing of the capital markets. Driven by the growth of capital markets, the importance of these infrastructures has been increasing. Their evolution has been remarkable and has generated very strong returns for savvy investors.
The FTSE Mondo Visione index, the oldest, best-known index of exchange valuation, illustrates this phenomenon vividly. During 2001-2007, an investor in exchanges would have multiplied his money by 10X (~47% per annum). During 2009 -2019, by almost 6X (~18% per annum). During the long 2001 -2020 period by around 15% per annum, vs 10.5% per annum for the FTSE All-World Index. Quite a track record.