The British capital lost significant ground in the first index of global financial centers published since the United Kingdom completed its exit from the European Union, barely retaining the No. 2 spot in the ranking.
The London rating has fallen by 23 points since the previous edition compiled by the think tank Z / Yen, which was released in September. Now London is just one point ahead of Shanghai and Hong Kong and Singapore are not far behind.
The ranking is produced by combining assessments of financial professionals with quantitative benchmarks provided by third parties, including the World Bank, the Organization for Economic Co-operation and Development, and the United Nations.
Trade in billions of dollars worth of securities and derivatives has already disappeared from London since the end of Brexit on January 1, and moved abroad to cities such as Amsterdam, Paris and Frankfurt, where is the European Central Bank.
Frankfurt’s rating rose 12 points in the last Z / Yen index, while Milan rose 28 points. Paris and Amsterdam saw their ratings weaken.
The threat of losing business lies in London, home to dozens of the world’s largest banks, hedge funds and insurance companies.
Financial services were not included in the UK-EU trade agreement reached by British Prime Minister Boris Johnson in December, which put Brussels in a position to decide how much access UK-based companies will have. United to the vast EU market.
“I’m not predicting the end of London as a major financial center, but I think it’s in the most precarious state it’s been in for a long time and it can’t be complacent,” said Alasdair Haynes, the CEO. of Acquis Exchange, a boring rival on the London Stock Exchange and the CBOE, told CNN Business in February.
London remains an attraction for talent. And many financial institutions hope to get people back into the office as soon as possible.