The Resilience of Financial Exchanges in Inflation

This chapter explores the advantages financial exchanges hold during inflationary periods, emphasizing their capital-light business model and resilience amid market volatility. It discusses the critical factors that drive their profitability, including nominal GDP growth and money velocity, while also analyzing the strategic investment decisions surrounding exchanges like ICE and CME. The chapter highlights the barriers new platforms face against established exchanges, showcasing the impact of rising interest rates and new financial products on market dynamics.