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London has regained its crown as the largest stock trading center in Europe after Amsterdam was dethroned following Brexit.
The share of the UK capital in the European market, where about 40 billion euros of transactions a day are completed, has steadily increased in recent months thanks to the resumption of British trade in Swiss stocks.
Swiss equities were reintroduced in London after the UK’s exit from the EU, in the first significant split in EU financial services policy.
According to data from Cboe Global Markets, an average of 8.9 billion euros of trades changed hands every day on London-based stock exchanges and trading venues, compared to 8.8 billion euros in Dutch premises. It was the first time London was the busiest destination since it left the single market in January.
The London battle provides an early boost for the city as UK Chancellor Rishi Sunak prepares a series of changes to London’s stock trading rules to make the capital more competitive.
The landscape of stock trading on the continent after Britain’s exit from the EU has already been transformed. Previously, banks and fund managers across the block often channeled their offerings through London.
Brussels demanded that the EU institutions could no longer negotiate actions through London after Brexit. The bulk of this business went to Amsterdam in January, where many trading venues are based.
More than € 6.4 billion in transactions left the city overnight for a new law-abiding home when the UK left the single market in January. According to Big XYT data, Britain, which typically accounted for about a third of the average volume of daily transactions in Europe, fell to about a fifth of its total market share.
The London headquarters have regained a 30% stake in the trading of blue-chip Swiss shares, after the two countries recognized each other’s stock exchanges by equivalent rules.
London was the largest capital exchange outside the United States and Greater China during the first half of the year, with more than £ 27 billion, the highest amount since 2014, and far exceeding the totals of the exchanges in Frankfurt, Amsterdam, and Paris.
Activity has increased after the lists of 49 companies, including Deliveroo, Darktrace and Alphawave, even though some have performed less than the release date.
“More than half of the total capital of the IPO [in London] has been on the part of Internet technology and consumer companies that use public markets to support the next stage of their growth, ”said Charlie Walker, head of equity and fixed income at the London Stock Exchange’s primary markets. Group.
The London struggle in equity trading, first reported by Bloomberg, arrives as planned in the city diverge more of rival EU markets in the coming years, following the plans set by the Treasury this week.
The UK wants to allow investors more flexibility to operate out of the stock market. He plans reforms for “dark pools,” where fund managers buy and sell large blocks of stock without altering the market price, and slightly regulated private premises managed by banks and high-frequency operators. EU rules have tried to curb its use.
“While an equivalence agreement is still preferable, the absence of a global agreement has opened up possibilities in each region,” said Sylvain Thieullent, chief executive of Horizon Software, a commercial technology provider.
“Each market can think more pragmatically about its future and what it can do to support its business ecosystems than it could before,” he added.
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