3 Exchange Stocks Worth Watching As IPO Activity Cools

IPO activity is cooling just as hype around AI listings is being questioned, yet the exchanges that host those trades and listings still sit at the crossroads of this tension between fear and opportunity. If you care about where deal flows and trading volumes might cluster next, this is where attention goes first. This article reveals 3 exchange stocks tied to that story and how each is exposed to the current news shock.

The three stocks covered below are just a starting sample. The full screen on Simply Wall St surfaces 47 more listed exchange and trading venue businesses with equally compelling stories that are not covered here. To identify and analyze the highest conviction market infrastructure plays, go straight to the Global Listed Exchanges and Trading Venues screener.

Donnelley Financial Solutions (DFIN)

Donnelley Financial Solutions plugs directly into the Global Listed Exchanges and Trading Venues theme by handling the filings, workflows, and investor communications that keep listed-market activity compliant and running, which makes its revenue mix a useful window into how public markets actually operate.

DFIN runs regulatory and compliance software and services that support capital markets and investment companies, earning about $243 million from Capital Markets Software Solutions, $297 million from Capital Markets Compliance and Communications, $129 million from Investment Companies Software, and $107 million from Investment Companies Compliance and Communications, with a market value around $1.1b.

"The secular shift towards digitalization in capital markets and regulatory functions is accelerating migration from print to secure, cloud-based platforms, evidenced by notable growth in DFIN's software mix and sustained growth in recurring software products, supporting higher long-term net margins and more resilient cash flow."

What happens if a single assumption about how quickly clients move deeper into these higher value digital workflows proves either too cautious or too bold?

If that migration path is what really matters for DFIN, the full narrative for Donnelley Financial Solutions explains how the accelerating software mix, contract structure and capital intensity interact beyond the headline software shift.

Hong Kong Exchanges and Clearing (SEHK:388)

Hong Kong Exchanges and Clearing is one of the purest listed plays on market infrastructure. It plugs you directly into how trading, clearing, and listing activity flows across Hong Kong, China, and international markets, which is exactly what this screener is built to surface.

Hong Kong Exchanges and Clearing runs stock, futures, and clearing platforms across Hong Kong, the UK, and Mainland China, earning about HK$16.8b from Cash markets, HK$6.7b from Equity and Financial Derivatives, HK$3.6b from Commodities, and HK$2.4b from Data and Connectivity, with a market value near HK$475b.

"The ongoing enhancement and expansion of Connect programs has led to all-time highs in Stock Connect volumes and derivatives activity, broadening revenue opportunities and reinforcing HKEX as an essential platform for cross-border capital flows between China and the world."

What really matters from here is how one unresolved regulatory and competitive pressure shapes the durability of those high margin, fee-based cash flows.

That pressure point is exactly where the story gets interesting, and the full narrative for Hong Kong Exchanges and Clearing explains how Hong Kong Exchanges and Clearing could see those fee streams accelerate or stall.

CMC Markets (LSE:CMCX)

CMC Markets gives you direct exposure to listed-market activity because its trading and investing platform earns fees when clients trade, rather than from issuing shares itself. The business generated about £320 million from Trading and £70 million from Investing, with a market value near £1.7b.

CMC Markets plugs into this theme through day to day trading activity. When primary issuance cools but secondary trading stays busy, its platform economics become especially important for anyone tracking where actual transaction flows are going.

"The company's entry into digital assets, tokenization, and Web 3.0 (including its acquisition of StrikeX and rollout of multi-asset wallet infrastructure) positions CMC at the convergence of traditional and decentralized finance, giving it access to a rapidly expanding global user base and broadening its addressable market, likely to drive multi-year top-line revenue growth."

What happens to CMC Markets' margins and trading income if one key assumption about how actively these new users trade on the platform is wrong?

If that trading intensity is the real swing factor, the full narrative for CMC Markets shows where CMC Markets' volumes could be accelerating, stalling, or quietly decoupling from peers.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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