Traditionally, stock exchanges have been organized as mutual, not for-profitorganizations that were serving interests of their members. With the beginning oftechnical developments, the operating environment for exchanges has changeddramatically. Exchanges with the user-owned nature had to effectively respond thecompetitionTherefore a number of stock exchanges started to respond the challengeby changing their govemance structure and ways of conducting business from mutual(not-for-profit) to the demutualized (for-profit).The demutualization of stock exchanges is quite a recent event in theeconomic history (approximately 20 years). That is the reason why issues concemingdemutualized exchanges are objects of the studies of a lot of economists and lawyers.One of such issues is conflict of interest that appears after the demutualization process,conceming both governance structure and business model. Stock Exchanges aretrying to avoid them, however the general model of managing such conflicts hasntbeen established yet. In this regard the key consideration in preparing for ademutualized environment is the need to demonstrate that effective mechanisms existto address potential conflicts of interest arising from an exchanges profit motive andthe supervisory function that it performs.Objectives of study: to define the demutualization process and conflict ofinterests in the demutualization of stock exchanges, describe the types of conflict ofinterests, that are the most crucial for the legal research and consequently analyzethem.