Amsterdam has overtaken London as Europe’s largest share trading centre in a moment Robert Peston described as ‘unthinkable’ before Brexit.
More than half a billion more trades were made in the Dutch capital in January thanks to the UK’s split from the European Union.
According to the Financial Times, the shift came because Brussels had not recognised the UK exchanges and trading venues as having the same supervisory status as its own, leading to a ban on EU-based financial institutions trading in London.
As a result, immediately €6.5 billion of deals went to the EU when the Brexit transition period ended.
Rosenblatt Securities market structure analyst Anish Puaar told the FT: “It’s symbolic in that London has lost its status as the home of EU share trading, but it has a chance to carve out its own niche on trading.
“Fund managers will be more concerned with availability of liquidity and the costs of placing a trade, rather than whether an order is executed in London or Amsterdam.”
ITV’s political editor Peston tweeted out the news, saying the “idea that Amsterdam’s stock market would eclipse London never felt remotely plausible” until the UK chose to leave the EU.
Alastair Campbell tweeted in the same vein, saying it is another example of other countries “prospering mightily” because of Brexit.
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