As Amsterdam maintains its share-trading dominance over London, a Brexit warning is issued.
Despite efforts by London’s financial center to make its post-Brexit markets more appealing, AMSTERDAM maintained its share-trading supremacy.
Amsterdam surpassed London as Europe’s largest share trading center in January of last year.
Following the United Kingdom’s exit from the European Union, EU investors were unable to trade euro-denominated shares.
Much of the trading has shifted to Amsterdam, where Euronext, LSEG Turquoise, and Cboe Global Market’s post-Brexit operations are all based.
According to Cboe Global Markets, average daily trading in Amsterdam was 8.97 billion euros (£7.5 billion) in December, edging out London’s 8.32 billion euros (£6.9 billion).
Despite the fact that Amsterdam had overtaken London following Brexit, the UK capital was able to reclaim the lead in June.
It was able to reclaim lost ground thanks to a deal with Switzerland that allowed Swiss share trading to resume in London.
However, it was not enough to keep the top spot for long, as other initiatives fell short of expectations.
Britain made it easier to list special purpose acquisition companies (SPACS) in August, but only one had done so by November.
Euronext reported that it had 22 new SPAC listings in 2021, accounting for roughly half of all those coming to market in Europe.
The financial sector has urged the British finance ministry to step up efforts to improve the competitiveness of the UK capital markets.
“It’s not a given that people will want to come to London,” Catherine McGuinness, policy chief for the City of London, which includes the financial district.
In an effort to entice more tech companies to list on LSEG’s premium segment, the Financial Conduct Authority introduced more flexible rules for listings last month.
In 2021, LSEG said 122 companies would be listed on its exchange, raising more than £16 billion.
Euronext, whose European exchanges include Amsterdam, had a record year, with 212 new listings raising more than £21 billion.
Frank Eich, a former Bank of England adviser, stated in March of last year that London should not be written off.
He claims that no other financial center can match the “breadth and depth of specialist knowledge and skills” that he can provide.
“Despite Brexit, London remains one of the most important global financial centers,” Mr. Eich said.
He claims that while London lacks the size of the US market, it is “more diverse” and “intentionally focused.”
Mr Eich continued, writing for Germany’s RedaktionsNetzwerk Deutschland, “In.
“Brinkwire News in Condensed Form.”