US Capital Market Exchange Ecosystem-Growth, Trends, COVID-19 Impact, And Forecast (2023-2028)

The US Capital Market Exchange Ecosystem is expected to have a CAGR of more than 8% in the forecast period. The capital market plays a very crucial role in the growth of the economic development of a country. Capital market is an umbrella term that is used for trades done in-person or on a virtual platform in financial securities such as bonds, debt instruments, shares, and other instruments. The exchange ecosystem refers to various systems and technologies that are used for trading in the capital market along with the working of this system. In the capital market entities such as businesses, governments, and individuals seek capital, and people or institutions are the investors. The capital market is composed of primary and secondary markets. COVID-19 had significantly affected the capital market, for instance, the outbreak of the COVID-19 pandemic triggered a freefall in share prices. This has adversely affected the US Capital market however the market has seen steady growth since last year.

The capital market is regulated by an entity in the US known as "The Securities and Exchange Commission" (SEC). In 2021, U.S. Treasury securities issuance reached $5.1 trillion, long-term fixed income issuance rose to $13.4 trillion, while mortgage-backed securities (MBS) issuance increased 7.3% Y/Y to $4.6 trillion, and initial public offering (IPO) volume was $153.5 billion.

US Capital Market Exchange Ecosystem Trends

Increasing Capitalization in Equity Market Driving the Capital Market

The US equity market significantly affects the US capital market exchange ecosystem. An equity market refers to a network of financial institutions, channels, and markets that helps companies raise capital. Capital is raised by issuing shares in the company, publicly or privately. The US equity markets represent 42.0% of the global equity market capitalization. The US equity market has shown a growth CAGR (10 Years) of more than 10%. This rapid growth in the equity market will make a positive impact on the economy of the US.

Increasing Foreign Direct Investment in the United States in Driving the growth of Ecosystem

Foreign direct investment (FDI) has proved to be resilient during financial crises such as COVID-19. The impact of increasing foreign direct investment on the capital market shows a positive trend in the market. Foreign direct investment in the United States has increased by $506.1 billion from 2020 to 2021. This depicts the growth in the ecosystem of the capital market in the US.

US Capital Market Exchange Ecosystem Competitor Analysis

The US Capital Market Exchange Ecosystem is highly consolidated, with the presence of a small number of players across the country. Some of the significant players operating in the US Capital Market Exchange Ecosystem include New York Stock Exchange, National Association of Securities Dealers Automated Quotation System, Cboe Options Exchange, International Securities Exchange, and Miami Stock Exchange.

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• The market estimate (ME) sheet in Excel format
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