Reality…London is where the bankers are not Brussels
Turning to the UK’s role in providing financial services within the EU, Britain as a whole has thus become the Union’s lead player in a number of key areas. This is true especially for derivatives trading, foreign exchange trading, hedge fund activity and marine insurance, for which the UK accounts for over half of European business (see Table 2). Overall, it is estimated that 35% of EU wholesale financial services activity takes place in London.
- 7 TheCityUK, The UK: Europe’s Financial Centre , August 2016.
- 8 TheCityUK, ibid, November 2016.
11It should also be noted that 112 major European companies are listed on the London stock exchange, because it is a larger, more prominent international market offering better trading and liquidity conditions (i.e. the ease with which investors can enter and exit markets, in this case by buying and selling shares in listed companies).7 Furthermore, 60% of non-EU firms establish their European headquarters in London and the UK, while 40% of the European headquarters of the top 250 companies are based in London.8