London regains top trading status from Amsterdam
After being deposed by Amsterdam after Brexit, London regained its crown as the largest stock trading center in Europe.
Due to the resumption of British trading of Swiss stocks, the share of British capital in the European market has steadily increased in recent months. The European market completes approximately 40 billion euros of transactions every day.
After the United Kingdom left the European Union, Swiss stocks were relisted in London. This was the first major divergence with the EU’s financial services policy.
According to data from Cboe Global Markets, in June, London exchanges and trading venues changed hands for an average of 8.9 billion euros of stock transactions per day, while Dutch venues’ stock transactions were 8.8 billion euros. This is the first time London has become the most active destination since it left the single market in January.
London’s counterattack provided an early boost to the City of London, as the Chancellor of the Exchequer Rishi Sunak (Rishi Sunak) prepared a series of changes to London’s stock trading rules to improve the capital’s competitiveness.
After the UK left the European Union, the stock trading pattern in continental Europe has been reshaped. In the past, banks and fund managers across the group often traded through London.
Brussels requires EU institutions to stop trading stocks in London after Brexit.Most of the business goes Amsterdam In January, many trading venues are located there.
When the United Kingdom left the single market in January, more than 6.4 billion euros of transactions left the City of London overnight to purchase new homes that comply with the law. According to Big XYT data, the United Kingdom usually accounts for about one-third of the average daily transaction volume in Europe, but now accounts for about one-fifth of the total market share.
After the two countries recognized that their stock exchanges had the same standards, the London Stock Exchange recovered 30% of the trading share of Swiss blue chip stocks.
In the first half of this year, London was the busiest fund-raising exchange outside the United States and Greater China, with a total of more than 27 billion pounds, the highest amount since 2014, and far exceeding the total financing of the Frankfurt, Amsterdam and Paris exchanges.
After 49 companies including Deliveroo, Darktrace and Alphawave went public, activity has increased, although some companies have performed poorly since they went public.
“More than half of the IPO proceeds [in London] Technology and consumer Internet companies have been using the open market to support their next phase of growth,” said Charlie Walker, head of primary market equity and fixed income at the London Stock Exchange Group.
London’s counterattack in stock trading, first reported by Bloomberg, was prepared in the City of London Further divergence According to the plan made by the Ministry of Finance this week, it will buy from the EU’s rival market in the next few years.
Britain wants to allow investors More flexible Leave the stock exchange to trade. It plans to reform the “dark pool”, that is, fund managers buy and sell large amounts of stocks without disrupting market prices, as well as loose supervision of private places operated by banks and high-frequency traders. EU rules try to restrict their use.
“While equivalent agreements are still desirable, the lack of comprehensive agreements opens up possibilities for each region,” said Sylvain Thieullent, CEO of transaction technology provider Horizon Software.
“Each market can think more pragmatically about their future and what they can do to support a trading ecosystem that they could not do before,” he added.