Economics
Even Before Brexit, London Lost Its Status as Derivatives Center
- London share of interest-rate derivatives fell to 39% from 50%
- Rate divergence between U.S. and Europe will drive trend: BIS
Davies: Markets Need Brexit Transition Assurance
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As London’s financial industry braces for Brexit, a new report shows the capital has already lost its leadership in at least one key market. New York has now eclipsed the city as the biggest center for off-exchange derivatives trading.
New analysis from the Bank for International Settlements shows that the country’s share of the $2.7 trillion a day interest-rate derivatives market fell to 39 percent this year from 50 percent in 2013. New York’s share of global trading has climbed to 41 percent from 23 percent.