London’s City finance reigns in Europe despite Brexit fallout

London’s City finance reigns in Europe despite Brexit fallout

LONDON: One year after Britain’s formal exit from the European Union, London’s powerful City financial sector still reigns on the continent despite losing key business and bankers to rival hubs.

“London has spent hundreds of years as a global financial center. Brexit will not change that, certainly not anytime soon,” said Lee Wild, head of equity strategy at Interactive Investor. The City, whose skyscraper offices are largely deserted by COVID restrictions, has yet to strike a post-Brexit deal with Brussels on equivalence, which would allow London-based firms to fully operate in Europe.

London has over the past year lost out to rivals on equity trading, struggling to recover ground after a hammering triggered immediately after Britain’s EU exit. Trading on London’s stock market slumped by about 40 percent at the start of 2021, with London prevented from offering EU-listed shares to clients outside the United Kingdom.

Amsterdam has benefitted the most, overtaking London to become Europe’s biggest hub in terms of equity trading volumes for much of the past year, according to Cboe Global Markets.

London remains the world’s second biggest financial center behind New York when various factors are taken into account including infrastructure, reputation and business environment, according to the Global Financial