Europe Shouldn’t Try to Eat London’s Lunch

Brexit could one day give the European Union an opportunity to challenge the City of London’s dominance as a global financial hub. Right now, however, the EU is in no condition to take advantage.

As talks on Britain’s future relationship with the union come down to the wire — yet again — London’s role as the bloc’s primary purveyor of financial services is under scrutiny. By the end of this year, the EU must decide whether to grant U.K.-domiciled firms unfettered access to its market or to set up barriers that would require them to move operations to the continent. At stake are businesses including trading stocks, managing investment funds, and clearing and settlement, which entails keeping track of who owes what to whom in currency and derivatives markets. Some big companies, including JPMorgan Chase & Co., are already shifting assets and personnel.