According to Iosco, there has been a shift towards more competitive, cross-border and diversified operations with exchanges becoming more like large corporates.

It is not just the acquisitions of multiple national exchanges by one group but the purchase of data providers, digital asset platforms and other ancillary services.

Of particular concern to Iosco are the regulatory and governance implications for multinational exchange groups, including potential conflicts of interest arising from “matrix structures” and the challenge of "overseeing individual exchanges within exchange groups”.

Iosco has issued six recommendations to regulators covering issues such as conflicts of interest and regulatory compliance and calling for a monitoring of the structure and ownership of large exchange groups.

“In today’s rapidly evolving financial landscape, this consultation report sheds light on the shifts occurring within exchanges worldwide and offers six good practices as well as supervisory toolkits which aim to address the challenges and ensure effective oversight in this evolving environment,” said Isadora Tarola, chair of the Iosco committee on regulation of secondary markets. Market participants have until July 3 to provide comments on the consultation paper.