The city of Amsterdam in the Netherlands shifted London, the capital of England, to become the largest stock trading center in Europe. This happened after Britain officially separated from the European Union (EU) or Brexit (Britain Exit).
According to Cboe, the stock exchange in Amsterdam traded 9.2 billion euros a day in January, while in London it traded 8.6 billion euros. Cboe operates in both cities.
London has long warned of the consequences of leaving the EU without adequate provisions for services trade and finance, which accounted for more than 10% of UK tax revenue before Brexit.
Exchange officials said the switch from London to Amsterdam is likely to be permanent as the EU shows no signs of reversing its position that euro-denominated shares should trade in the EU, whose internal market Britain abandoned on January 1.
Platforms in Amsterdam and to a lesser extent in Paris, accounted for a quarter of the euro-rate swap market in January, up from just 10% last July, IHS Markit said.
During the same period, London’s share fell from just under 40% to just over 10%, with the US platform doubling in volume to 20% of the total euro exchange market.