Emerging market stock exchanges differ from developed ones in several key ways, mainly in terms of size, liquidity, regulation, and investor participation. Developed markets like the New York Stock Exchange or the London Stock Exchange have deep liquidity, meaning large volumes of shares are traded daily. This ensures smoother transactions, tighter spreads, and better price discovery. In contrast, emerging market exchanges often face lower trading volumes, which can lead to higher volatility and wider bid-ask spreads.

Regulation is another area of difference. Developed exchanges usually operate under strict regulatory frameworks that enforce transparency, protect investors, and prevent manipulation. Emerging market exchanges may have improved but less mature oversight, which sometimes increases the perception of risk among global investors.

Market accessibility also differs. Developed markets attract a broad base of global institutional investors due to their stability and advanced infrastructure. Emerging exchanges are growing in this regard, but may face restrictions such as capital controls, currency risks, and limited foreign investor participation.

Technology and infrastructure in developed exchanges are highly advanced, supporting algorithmic and high-frequency trading. Emerging exchanges are modernising quickly but still lag in speed and efficiency compared to their developed counterparts.

Despite these gaps, emerging market exchanges present higher growth potential. They reflect fast-growing economies and offer opportunities for investors seeking diversification and higher returns, though usually with greater risk.