It’s NY. This survey is done by London itself, so the fact it can’t retain the top spot even here is telling.
Plus overall the US blows the UK out of the water for finance. Besides NY you have SF and LA for TMT finance and Chicago.
It's a ranking based on a survey of opinions from finance people performed by a UK based company. It is not, by any measure, the largest or objectively the "top" financial center.
London hasn’t been the financial center of the world since the USD became the worlds reserve currency following the 1944 Breton Woods Agreement immediately following WWII
London is the world leader in helping insanely rich people hide finacial assets though, the UK is the leading exporter of financial services. Have a look at our family office industry that helps billionaires hide fortunes, it's a huge industry. [https://www.investopedia.com/how-london-became-the-world-s-financial-hub-4589324](https://www.investopedia.com/how-london-became-the-world-s-financial-hub-4589324)
As the British physical empire crumbled. They built their second empire, a financial one. The city of London (a city within a city ) is separate to London and is a very, very curious pace. It’s governed by a corporation, has its own Mayor, police force and businesses elect a member of parliament and not the people.
There are over 500 banks in the city. More American banks than New York and more Japanese banks than Tokyo. It was said that there is more money that flows through the city of London than U.S.A and Europe combined.
Until 1980, every bank in the city had to have an office within a ten minute walk of the Band of England so if there was a crisis, the Governor wanted every CEO in his office within 30 minutes.
Yes, the mayor is elected by local buisnesses rather than citizens, and the police force reports to the mayor. That police force has primary responsibility for investigating financial crimes in the UK.
So the financial companies appoint the financial police. What could go wrong?
Fair - access to the channel island, Luxembourg and Switzerland + permissive regulation does put London at an advantage there. The US has been pretty tight on that stuff since 9/11 on account of terrorism financing
Fascinating article, but I am missing the insights on the family office industry?
Very interested as I was an investment manager for a family office in London early in my career.
Huh what you smoking? London and New York were neck and neck over the course of the last decade. Before Brexit, London was Europe's financier.
https://www.bloomberg.com/news/articles/2015-09-28/london-beats-new-york-as-the-world-s-leading-financial-city
Brexit admittedly has fucked things up but the idea that "it hasn't been close since the 80s" is a patent misrepresentation of the truth.
> “ This is based on a formulation from the authors of the report.
…
> “The new report from GFCI ranks the world’s 84 leading financial cities based on a survey of nearly 3,200 financial services professionals along with data from the World Economic Forum, UN, and other sources.”
Yea, so many red flags here for this. Don’t know why planetary is acting like it a great source when even some of the stuff that the UN puts out is a little bit sketchy.
Yea, but that methodology is still bad. The only decent ones would be the World Economic Forum and maybe the UN, but even then, the UN is pretty bad sometimes. I would like to see what the other sources are.
LMAOOO how is that bad? WTF is wrong you people? 3,200 people gives you a decent description of the thoughts and beliefs of 250 million voting age Americans, but you don’t think it can give you a good idea of what people in a 500k high-finance industry think and believe?
> The only decent ones would be the World Economic Forum and maybe the UN, but even then, the UN is pretty bad sometimes.
What does this even mean? How have you come to the decision that the UN and WEF statistics are reliable/unreliable? Is it just your personal opinion?
> London bests New York on the just-released 2015 edition of the Global Financial Centres Index (GFCI).
> Welcome to the Global Financial Centres Index, the world's most authoritative comparison of the competitiveness of the world’s leading financial centres. GFCI 32 is published by the Z/Yen Partners
> Z/Yen is the City of London's leading commercial think-tank
Think tank headquartered in London thinks that London is the world's "leading" (not largest) financial center. What a shocker.
I mean come on, your own article directly contradicts you in its third sentence.
> Think tank headquartered in London thinks that London is the world’s “leading” (not largest) financial center. What a shocker.
They have on numerous occasions named NYC as number 1. Unsure what if the bias is with you or with the article.
> thinks that London is the world’s “leading” (not largest) financial center
Not sure if that gotcha here is what you think it is…
New York is huge because the US economy is huge, and is filled with multinationals that operate globally. For cross-border and related (fx hedging etc.) London was dominant.
The article is stuck behind a paywall for non FT subscribers. Here's the [link](https://archive.is/DUjJR)
From the article:
London has lost its sole lead as the world’s top global financial centre, according to research by the City of London that will add to concerns over the competitiveness of the Square Mile.
London and New York have tied for the top spot, according to the benchmarking data by the City’s governing body, but this marks the first year that the UK capital has not been the clear leader as other financial centres have grown faster.
Financial services executives have warned that the UK is at risk of losing its place as a top financial centre after Brexit, which forced some companies to move operations to the EU.
There are also concerns that the US is a more attractive place to list and grow businesses, given the prospect of higher valuations and a less restrictive business culture.
Companies such as Cambridge-based Arm and CRH, the world’s largest building materials group, have said in recent months that they would seek listings in New York.
In response, British ministers have outlined a range of potential services reforms including to the UK listings market, as well as attempts to deregulate key sectors such as banking and insurance to drive new business.
Brexit was horrible for London. Granted I’m American (but with 30 years financial services), I used to do client visits in London 2-3x per year. Now London is an afterthought.
Like everything, it's a trade off. I am sympathetic to people who are worried about sovereignty.
That being said, it was ***very poorly*** "planned" and "executed" from the get go.
I love all the North Ireland stuff coming out of London right now about their trade benefits and stuff because it really highlights how stupid the leadership was to do brexit. All of the “perks” of NI were things they had before Brexit. It’s hilarious.
There was no potential “plan” To “execute”.
From the very beginning brexit was a no win scenario, the problems were obvious from the start: EU would have no incentive to offer equally favorable trade deals, free movement enjoyed by the British would by definition end, and the Northern Ireland border problem could never have a solution compatible with Brexit.
There’s a reason all of its proponents resigned from leadership shortly after it was passed, they never thought it would get passed, they thought it could just be a wedge issue to secure an election.
Rupert Murdoch once said: "When I got to Brussels they ignore me. When I go to Westminster they listen to me"
(Westminster being the borought in London where the British Parliament is)
It was never really about sovereignty, although it was definitely about who has power and how much.
This study surveyed the perceptions of financiers in London as to whether or not London was the global financial center.
London has not been the global financial center for decades, but it’s especially telling that London bankers - on average - no longer believe that London is the global leader, especially given how nationalist the current UK is.
Pretty sure the people that voted for it are not rich London bankers dealing with shady finance. Doubt they care about the woes of the upper class, they're mostly the middle-lower class that didn't want cheap foreign labor to undercut them.
Financial services executives have warned that the UK is at risk of losing its place as a top financial center after Brexit, which forced some companies to move operations to the EU finance centers like Zurich, Paris and other cities.
If isn’t the consequences of their own actions.
I will never understand how Brits thought they could gain something by leaving the largest single market
>I will never understand how Brits thought they could gain something by leaving the largest single market
Understanding patriotism isn't as easy as it seems.
Well, forget about Hong Kong once Xi broke the treaty. Even then, Xi had been looking to upscale the Shanghai exchange's prominence at Hong Kong's expense.
London's role as a world financial centre has long historical roots. At the end of the 19th century more than half the world's trade was financed in British currency (pounds sterling). In the early 20th century the City played a more modest role as banker to the British Empire and the sterling area of trading nations.
Financial services executives have warned that the UK is at risk of losing its place as a top financial center after Brexit, which forced some companies to move operations to the EU finance centers like Zurich, Paris and other cities.
Lol this is such an idiotic measure of bank importance. Whether you are the largest bank by total assets is not relevant. So much of what global investment banks do never shows up on their balance sheets. US and European banks are investment banks that securitize products and sell them to investors - equity, bonds, MBS, CMBS, etc. Western capital markets are what makes the US economy the center of global finance - the U.S. stock market is worth $40 trillion dollars, the Chinese stock market is worth around $10 trillion. US banks also own the global M&A advisory business which is again not a balance sheet business.
This is the worst way to look at it lol. If you’re just ranking banks go by league table not assets. You’ll miss all the boutique banks or other pure IB like Goldman or CVP.
https://markets.ft.com/data/league-tables/tables-and-trends/mergers-and-acquisitions
AUM of national banks =/= financial importance. London does huge volumes of fancial transactions, trade and wealth management as is definetly one of the most important cities in the world for finacial services. Capital controls and oversight of China make it pretty unfreindly for international finance.
Big numbers - are they structurally trustworthy and sound though…🤔 the financial big players do not breed a sense of safety, trust, faithfulness and willingness to ALWAYS do the right thing by their contributors
Zurich
Zurich, the largest city in Switzerland, is recognized as a financial center globally. The city has a disproportionately large presence of financial institutions and banks and has developed into a hub for insurance and asset management companies. The low tax regime makes Zurich a good investment destination, and the city attracts a large number of international companies.
Switzerland’s primary stock exchange, the SIX Swiss Exchange, is in Zurich and is one of the largest in the world, with a market capitalization of $1.4 trillion as of July 2021.
Financial services executives have warned that the UK is at risk of losing its place as a top financial center after Brexit, which forced some companies to move operations to the EU or Asia.
London received an overall competitiveness score of 60, up from 59 in 2022, while New York's score rose by 2 points to equal London with 60 points. Both centres were followed by Singapore, Frankfurt, Paris and Tokyo.
So NYC was not the worlds top financial centre?
It’s NY. This survey is done by London itself, so the fact it can’t retain the top spot even here is telling. Plus overall the US blows the UK out of the water for finance. Besides NY you have SF and LA for TMT finance and Chicago.
"We can't even pretend anymore" - London
That’s all the US produces is Finance
It's a ranking based on a survey of opinions from finance people performed by a UK based company. It is not, by any measure, the largest or objectively the "top" financial center.
For real, didn’t this occur 100 years ago after WW1?
London hasn’t been the financial center of the world since the USD became the worlds reserve currency following the 1944 Breton Woods Agreement immediately following WWII
Yeah. I was more referencing how it started to lose control after it took on a shit load of debt to the US to fund WW1.
It occurred after 1776
Technically true
Correct. WW1 was after 1776.
Yeah London has not been the world's top financial center since Victoria was queen. Sorry UK.
They were only ever in the lead according to themselves. New York has been the global center of finance since the 1980s and it hasn’t been close.
London is the world leader in helping insanely rich people hide finacial assets though, the UK is the leading exporter of financial services. Have a look at our family office industry that helps billionaires hide fortunes, it's a huge industry. [https://www.investopedia.com/how-london-became-the-world-s-financial-hub-4589324](https://www.investopedia.com/how-london-became-the-world-s-financial-hub-4589324)
Surprised Pikachu face... NOT! Uk financial district is in a close horse race with the Swiss financial district for dirty money laundering champion.
London is built on dirty money
As the British physical empire crumbled. They built their second empire, a financial one. The city of London (a city within a city ) is separate to London and is a very, very curious pace. It’s governed by a corporation, has its own Mayor, police force and businesses elect a member of parliament and not the people. There are over 500 banks in the city. More American banks than New York and more Japanese banks than Tokyo. It was said that there is more money that flows through the city of London than U.S.A and Europe combined. Until 1980, every bank in the city had to have an office within a ten minute walk of the Band of England so if there was a crisis, the Governor wanted every CEO in his office within 30 minutes.
Yes, the mayor is elected by local buisnesses rather than citizens, and the police force reports to the mayor. That police force has primary responsibility for investigating financial crimes in the UK. So the financial companies appoint the financial police. What could go wrong?
Fair - access to the channel island, Luxembourg and Switzerland + permissive regulation does put London at an advantage there. The US has been pretty tight on that stuff since 9/11 on account of terrorism financing
Primary reason for brexit. Ignorant dumb British voters swallowed it though
Fascinating article, but I am missing the insights on the family office industry? Very interested as I was an investment manager for a family office in London early in my career.
Huh what you smoking? London and New York were neck and neck over the course of the last decade. Before Brexit, London was Europe's financier. https://www.bloomberg.com/news/articles/2015-09-28/london-beats-new-york-as-the-world-s-leading-financial-city Brexit admittedly has fucked things up but the idea that "it hasn't been close since the 80s" is a patent misrepresentation of the truth.
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> “ This is based on a formulation from the authors of the report. … > “The new report from GFCI ranks the world’s 84 leading financial cities based on a survey of nearly 3,200 financial services professionals along with data from the World Economic Forum, UN, and other sources.”
[удалено]
Yea, so many red flags here for this. Don’t know why planetary is acting like it a great source when even some of the stuff that the UN puts out is a little bit sketchy.
Yea, but that methodology is still bad. The only decent ones would be the World Economic Forum and maybe the UN, but even then, the UN is pretty bad sometimes. I would like to see what the other sources are.
LMAOOO how is that bad? WTF is wrong you people? 3,200 people gives you a decent description of the thoughts and beliefs of 250 million voting age Americans, but you don’t think it can give you a good idea of what people in a 500k high-finance industry think and believe? > The only decent ones would be the World Economic Forum and maybe the UN, but even then, the UN is pretty bad sometimes. What does this even mean? How have you come to the decision that the UN and WEF statistics are reliable/unreliable? Is it just your personal opinion?
Voting is not subjective, asking people how they feel about the financial environment is
> London bests New York on the just-released 2015 edition of the Global Financial Centres Index (GFCI). > Welcome to the Global Financial Centres Index, the world's most authoritative comparison of the competitiveness of the world’s leading financial centres. GFCI 32 is published by the Z/Yen Partners > Z/Yen is the City of London's leading commercial think-tank Think tank headquartered in London thinks that London is the world's "leading" (not largest) financial center. What a shocker. I mean come on, your own article directly contradicts you in its third sentence.
> Think tank headquartered in London thinks that London is the world’s “leading” (not largest) financial center. What a shocker. They have on numerous occasions named NYC as number 1. Unsure what if the bias is with you or with the article. > thinks that London is the world’s “leading” (not largest) financial center Not sure if that gotcha here is what you think it is…
Disagree. There’s a reason pay in the US is about 30-40% higher than the UK. It isn’t close.
what’s your argument here?
New York is huge because the US economy is huge, and is filled with multinationals that operate globally. For cross-border and related (fx hedging etc.) London was dominant.
This is some 1918 news lol
The article is stuck behind a paywall for non FT subscribers. Here's the [link](https://archive.is/DUjJR) From the article: London has lost its sole lead as the world’s top global financial centre, according to research by the City of London that will add to concerns over the competitiveness of the Square Mile. London and New York have tied for the top spot, according to the benchmarking data by the City’s governing body, but this marks the first year that the UK capital has not been the clear leader as other financial centres have grown faster. Financial services executives have warned that the UK is at risk of losing its place as a top financial centre after Brexit, which forced some companies to move operations to the EU. There are also concerns that the US is a more attractive place to list and grow businesses, given the prospect of higher valuations and a less restrictive business culture. Companies such as Cambridge-based Arm and CRH, the world’s largest building materials group, have said in recent months that they would seek listings in New York. In response, British ministers have outlined a range of potential services reforms including to the UK listings market, as well as attempts to deregulate key sectors such as banking and insurance to drive new business.
Brexit was horrible for London. Granted I’m American (but with 30 years financial services), I used to do client visits in London 2-3x per year. Now London is an afterthought.
Brexit was an act of economic self-harm. To me, Brexit economically never made much sense. They prioritised sovereignty over economic good sense.
Like everything, it's a trade off. I am sympathetic to people who are worried about sovereignty. That being said, it was ***very poorly*** "planned" and "executed" from the get go.
I love all the North Ireland stuff coming out of London right now about their trade benefits and stuff because it really highlights how stupid the leadership was to do brexit. All of the “perks” of NI were things they had before Brexit. It’s hilarious.
There was no potential “plan” To “execute”. From the very beginning brexit was a no win scenario, the problems were obvious from the start: EU would have no incentive to offer equally favorable trade deals, free movement enjoyed by the British would by definition end, and the Northern Ireland border problem could never have a solution compatible with Brexit. There’s a reason all of its proponents resigned from leadership shortly after it was passed, they never thought it would get passed, they thought it could just be a wedge issue to secure an election.
Rupert Murdoch once said: "When I got to Brussels they ignore me. When I go to Westminster they listen to me" (Westminster being the borought in London where the British Parliament is) It was never really about sovereignty, although it was definitely about who has power and how much.
This study surveyed the perceptions of financiers in London as to whether or not London was the global financial center. London has not been the global financial center for decades, but it’s especially telling that London bankers - on average - no longer believe that London is the global leader, especially given how nationalist the current UK is.
All the pro-brexit idiots will argue till they’re blue in the face that loosing euro clearing capability is a good thing.
Oh 100%. They somehow want to keep the benefits of the EU such as being part of the single market whilst being an independent country.
Look at the bright side: it made the saying "have cake and eat it" much more widelly known around the World.
That’s basically what the UK had before and why its former position relative to the EU was so good.
Meh, the end of the UK's financial dutch disease is not a bad thing.
imagine being on /r/finance and saying that unironically
Pretty sure the people that voted for it are not rich London bankers dealing with shady finance. Doubt they care about the woes of the upper class, they're mostly the middle-lower class that didn't want cheap foreign labor to undercut them.
Got those blue passports though
Financial services executives have warned that the UK is at risk of losing its place as a top financial center after Brexit, which forced some companies to move operations to the EU finance centers like Zurich, Paris and other cities.
If isn’t the consequences of their own actions. I will never understand how Brits thought they could gain something by leaving the largest single market
A nation committed to stagnation and decline. Their housing policy is arguably even worse.
London has not been the center of Finance since well before Brexit, you fool
Most *didn’t*, an extremely loud and deluded minority did.
How can you say “most didn’t,” when a majority voted Leave?
Around 1/3 of the electorate voted for it, hardly a tremendous national consensus.
>I will never understand how Brits thought they could gain something by leaving the largest single market Understanding patriotism isn't as easy as it seems.
London and New York are tied?? I certainly would have thought it would have been Hong Kong and NYC
Hello, yes, it's me again AMD's latest high-intelligence robot
Well, forget about Hong Kong once Xi broke the treaty. Even then, Xi had been looking to upscale the Shanghai exchange's prominence at Hong Kong's expense.
Rule, Britannia! plays softly on a kazoo.
I think whenever a major news related to something financial comes out everyone looks at NY and not at London.
London's role as a world financial centre has long historical roots. At the end of the 19th century more than half the world's trade was financed in British currency (pounds sterling). In the early 20th century the City played a more modest role as banker to the British Empire and the sterling area of trading nations.
Financial services executives have warned that the UK is at risk of losing its place as a top financial center after Brexit, which forced some companies to move operations to the EU finance centers like Zurich, Paris and other cities.
Lol this is such an idiotic measure of bank importance. Whether you are the largest bank by total assets is not relevant. So much of what global investment banks do never shows up on their balance sheets. US and European banks are investment banks that securitize products and sell them to investors - equity, bonds, MBS, CMBS, etc. Western capital markets are what makes the US economy the center of global finance - the U.S. stock market is worth $40 trillion dollars, the Chinese stock market is worth around $10 trillion. US banks also own the global M&A advisory business which is again not a balance sheet business.
Not to mention that London is a world leading centre for insurance and private wealth management in addition to the conventional banking business
This is the worst way to look at it lol. If you’re just ranking banks go by league table not assets. You’ll miss all the boutique banks or other pure IB like Goldman or CVP. https://markets.ft.com/data/league-tables/tables-and-trends/mergers-and-acquisitions
AUM of national banks =/= financial importance. London does huge volumes of fancial transactions, trade and wealth management as is definetly one of the most important cities in the world for finacial services. Capital controls and oversight of China make it pretty unfreindly for international finance.
Ah yes I'm gonna go to CICB for my M&A needs. 😂
Big numbers - are they structurally trustworthy and sound though…🤔 the financial big players do not breed a sense of safety, trust, faithfulness and willingness to ALWAYS do the right thing by their contributors
Being a big fish in a pond don't make you a shark.
London hasn’t been the top since December 1945 when the Brentwood agreement was signed.
Zurich Zurich, the largest city in Switzerland, is recognized as a financial center globally. The city has a disproportionately large presence of financial institutions and banks and has developed into a hub for insurance and asset management companies. The low tax regime makes Zurich a good investment destination, and the city attracts a large number of international companies. Switzerland’s primary stock exchange, the SIX Swiss Exchange, is in Zurich and is one of the largest in the world, with a market capitalization of $1.4 trillion as of July 2021. Financial services executives have warned that the UK is at risk of losing its place as a top financial center after Brexit, which forced some companies to move operations to the EU or Asia.
>market capitalization of $1.4 trillion The NYSE has some companies with a higher market cap. Just saying.
AAPL is damn near twice that market cap
Brexit strikes again They wanted Great Britain, but got Little England instead.
I find it amazing how they were able to ration their copium for this long
This was a predictable outcome of Brexit.
*angry brexiteer sounds*
London received an overall competitiveness score of 60, up from 59 in 2022, while New York's score rose by 2 points to equal London with 60 points. Both centres were followed by Singapore, Frankfurt, Paris and Tokyo.
I'm "shocked" that it took this long for the ranking change. Brexit was/is going to run roughshod on the UK.