Amsterdam is famous for many things such as canals, the best place in Europe for a rice table and an award winning 1998 novel, but as the leading place to trade shares?
Amsterdam the market leader?
The recent news that more shares had been traded in Amsterdam than London may have come as a surprise to many, not least for those in the financial community in Frankfurt, which has long been thought of as the most likely place to challenge the dominance of London. However, it should be noted that the Amsterdam exchange is regarded as being one of the oldest securities markets in the world, being established in the early 1600’s.
The reason behind this increase in trading volumes is Brexit and the fact that EU based financial institutions are no longer allowed to trade European Shares in London.
On average around 9.2 billion shares a day went through the Amsterdam market, which is four times higher than compared to a few months ago. It has been known for some time that the exchanges in the Netherlands have been looking to gain a bigger market share by highlighting various perceived advantages that they believe the town and country has, such as the support system and pleasant working environment and to expand their influence into other areas such as the debt market and new issues, which have been increasing in number.
This of course could have consequences in the future for London, especially regarding job numbers, along with the potential for companies to re-locate, although it must be stressed that this has not happened to any significant degree yet.
There is also the chance that as a result of ongoing discussions regarding financial services that EU share trading could be given the green light to be authorised once again through London, where the majority of fund managers and brokers are based. A report in the Financial Times last week that stated regulators in Brussels might try to force banks to move clearing of Euro-derivatives to the Eurozone, demonstrates that the Brexit situation has the potential to increase the pressure on London further from centres in Europe that are keen to take a larger percentage of the financial services pie.
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