LONDON, June 10 - The United States remains the world's biggest financial centre and well ahead of nearest rival Britain whose control over Frankfurt and Paris so far only outweighs the hit by Brexit, claims a new study by New Financial Think Tank on Thursday.
Brexit and the potential impact on the City of London has catalysed the debate about relative strengths and weaknesses of different financial centres in the world, New Financial said.
Its ranking for 65 markets echo those of similar surveys such as New Financial but the emphasis on both qualitative and international financial activity, rather than on real factors like business and regulatory environments, highlights the catch-up required by centres to get ahead.
The United States scored an overall 84 out of 100, more than double the score of 35 in the UK, which in turn is nearly three times that of France, Germany or Luxembourg.
Is New Financial used data from 2016 to 2019 to analyze all aspects.
China, at 29 points is the third largest financial center in Japan, ahead of the international hedging industry of Hong Kong and France because its small international financial sector compensates for comparatively weak international activity.
The markets in the Asia Pacific account for four of the top 10 financial centres and eight of the top 20 in the world, and have grown rapidly since 2016 New Financial said.
While Brexit raised concerns in London about the need to keep the city globally competitive, the EU is supporting its strategic autonomy in finance by forcing Euro stock and swaps trading to leave London for the bloc, and is now targeting euro clearing.
In 2019, the UK had 42% of all financial activity in an EU that still included Britain.
In ten subsectors that include hedge funds, international equity issuance and trading, FX, clearing and commodity derivatives trading, it has more foreign activity than the today 27 member countries combined in the EU, new financial said.