The UK capital lost significant points in the first Global Financial Centers Index published since the UK completed its exit from the European Union, barely retaining its number 2 spot on the rankings.
London’s rating has declined by 23 points since the previous issue of the Z / Yen think tank, which was released in September. London is now just one point ahead of Shanghai, and Hong Kong and Singapore are not far behind.
The ranking is made by evaluating financial professionals with quantitative criteria offered by third parties, including the World Bank, the Organization for Economic Co-operation and Development, and the United Nations.
Billions of dollars in equity and derivatives trading have already disappeared from London since Brexit was finalized on January 1, and moved abroad to cities, including Amsterdam, Paris and Frankfurt, home of the European Central Bank.
Frankfurt’s rating rose 12 points in the latest Z / Yen index, while Milan rose 28 points. Paris and Amsterdam weakened their ratings.
The threat of more lost business hangs over London, where dozens of the largest banks, hedge funds and insurance companies in the world are.
Financial services are 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 British companies will have to the large EU market. .
“I do not predict the end of London as a major financial center, but I think it is in the most difficult state in which it has existed for a long time and can not be complacent,” said Alasdair Haynes, CEO of Aquis Exchange, an emerging competitor to the London Stock Exchange and the CBOE, CNN Business said in February.
London remains a draw for talent. And many financial institutions hope to bring people back to the office as soon as possible.