We provide three measures of the U.S. share of exchange-based global trading volume and market capitalization. Loss of U.S. market share in these areas could ultimately result in less liquidity in the U.S. market as trading in foreign (and even U.S.) stocks moves abroad.
Measure 10 – U.S. Share of Global Market Capitalization
The data compares the domestic market capitalization of the two major U.S. exchanges (New York Stock Exchange and NASDAQ) with the domestic market capitalization of all other member exchanges of the World Federation of Exchanges. The data excludes listed foreign companies.
Measure 11 – U.S. Share of the Value of Global Share Trading
The data compares the value of share trading on the two major U.S. exchanges (New York Stock Exchange and NASDAQ) with the value of share trading on all other member exchanges of the World Federation of Exchanges.
Measure 12 – U.S. Share of Trading in Securities That Can Be Traded Either on a U.S. or Foreign Exchange
American depositary receipts (ADRs) represent shares of a foreign company that are traded on U.S. stock exchanges. Using the Bank of New York Mellon’s International 100 ADR Index—representing the ADRs of the 100 largest foreign issuers by market capitalization—the data shows ADR trading volume in the U.S. as a percentage of the trading volume of the companies’ ordinary shares on their home markets. For each company in the International 100 ADR Index, we compare, on a quarterly basis, the average daily ADR trading volume on its primary U.S. exchange for the preceding three-month period with the average daily ordinary share trading volume on its home exchange. The resulting ratio for each company is weighted by that company’s market capitalization.