Investment Exchange

Definition ∞ An investment exchange is a regulated marketplace where various financial instruments, such as stocks, bonds, or derivatives, are bought and sold. These platforms provide facilities for trading, clearing, and settlement, ensuring price discovery and market liquidity. They operate under specific rules designed to protect investors and maintain fair and orderly markets. Investment exchanges are central to the global financial system.
Context ∞ The rise of digital assets has prompted discussions about how existing investment exchanges can integrate cryptocurrency trading or how new crypto-native exchanges can achieve similar regulatory standing. Regulatory bodies are evaluating whether digital assets traded on these platforms qualify as securities or commodities, thereby subjecting the exchanges to established financial market rules. News often reports on traditional exchanges launching crypto divisions or dedicated digital asset platforms seeking licenses. This convergence represents a significant shift in financial market infrastructure.