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Seven diagrams show how Brexit has already changed the city of London

(Bloomberg) – A month after Britain voted to leave the European Union, Boris Johnson was asked if he thought the financial industry would keep its free trade rights in the bloc. “I do, I do,” he told reporters. It’s never been so easy. Half a decade later, billions of dollars in assets and thousands of jobs moved to the continent after the UK negotiated a trade deal with the EU that largely overridden funding and allowed cities across the bloc to move businesses in Lure movement. While the two sides may be in the process of signing a financial regulation cooperation agreement, neither side is anticipating the return of normal business operations. European cities like Amsterdam, Dublin, Frankfurt and Paris each recorded some of the shifts, although this has not yet been the case and emerged as the clear winner. Some of these changes, like stock trading volume, happened overnight. In other areas, such as jobs, it’s more of a slow churn as companies and individuals try to figure out which city is best for them in the post-Brexit evolving landscape. “We’ll have Frankfurt, Amsterdam, Paris and Dublin in the mix to take over part of the financial system,” Mairead McGuinness, the bloc’s financial services commissioner, told journalists in March. “The markets will decide and are probably best suited.” The situation remains fluid and the final outcome uncertain. The UK and the EU are expected to sign a Memorandum of Understanding on Financial Regulation Cooperation at the end of March, which could pave the way for better access for UK companies in the future through so-called equivalence decisions. Some flows could change direction if the UK starts setting its own rules outside the single market, while areas critical to London’s decades-long dominance as a financial center – including business clearing – have so far proven difficult. “I don’t think you can create a financial center,” said Douglas Flint, chairman of UK fund manager Standard Life Aberdeen. “The EU’s challenge is where to locate such a center and how to get other competing EU countries to abandon the activities they are hosting.” However, if the first three months of 2021 are any sign of that, Brexit could be the Reshaping financial centers across Europe in the coming years. Here’s what’s happened so far: Stock Trading European stock markets opened on January 4th to a one-time “big bang” change in the generation. Almost all of the trading volume in shares of European companies that took place in the UK flowed into the EU. London soon lost its crown to Amsterdam as the best place on the continent to buy and sell stocks. Trading in Swiss stocks, which had been blocked during the UK’s EU membership, resumed in February and helped boost business on UK platforms. Britain is now hoping to boost stock markets by making it easier for companies to go public in London. Swaps TradingLondon has long been a global center for trading interest rate swaps and has recently beaten New York and cities across Europe and Asia. However, the city’s dominance was undermined after the EU prevented companies within its borders from trading certain benchmark contracts on platforms based in London. In the face of a market rupture between the EU and the UK, some banks have instead routed their business to Wall Street, where both jurisdictions allow trading, although London remains a dominant player with outside-facility trading still seeing a lot of disruption : Derivatives clearing. The clearing house of the London Stock Exchange Group Plc, LCH, has received a decision from the EU that allows it to settle its European business until June 2022. However, the EU makes it clear that the balance of power should shift and more euro-denominated business should be carried out within its borders. The Bank of England has already vowed that the UK will oppose any EU to force business relocation. Investment Banking Initial public offerings are another area where the Square Mile continues to overshadow its continental competitors. Quotes in the UK are firmly on track for a record quarter in the first quarter. Company of the shoemaker Dr. Martens to the Russian discounter Fix Price bring in a total of 7.2 billion US dollars. This is before the UK government’s proposed easing of listing requirements comes into effect. M&A bankers are also enjoying a busy year. Foreign company acquisitions in the UK nearly tripled this year to $ 66 billion, a record for the period, according to data compiled by Bloomberg. Acquisitions of listed British companies have increased more than sevenfold. However, this may reflect weakness rather than strength. UK companies have become more vulnerable targets as the valuation gap between local stocks and other major markets has widened over the past year. Jobs and AssetsFinance companies have announced that around 7,600 jobs will be relocated from the UK to the block, according to a study by consulting firm EY. About 1.3 trillion pounds ($ 1.8 trillion) of assets are also in motion. Dublin has attracted the largest absolute number of companies of any kind that have relocated to the block. Frankfurt and Paris were also popular with larger corporations such as universal banks, investment banks, and brokers. House Prices While tax changes and a comparatively weak UK economy have had the greatest impact on house prices, the uncertainty of Brexit and the migration of Brexit bankers may exacerbate existing trends in house prices. Since the UK voted to leave the EU, house prices in London have increased 6%, compared to a fifth in Dublin and Amsterdam’s 40% increase. More articles like this can be found at bloomberg.com. Sign up now to stay up to date with the most trusted business news source. © 2021 Bloomberg L.P.