It’s an endless debate, and a matter of great pride in both cities. Which of the world’s two most financialised, globalisiation-cheering megacities can reasonably be described as the world’s capital?
One hundred and fifty years ago, the answer was indisputably London. Fifty years ago, the answer was indisputably New York. Now? Well it’s not so clear. Here’s Business Insider UK’s best case that it’s London, not New York, that deserves the crown.
In terms of stock exchanges, calling London the world’s financial capital looks ludicrous. The London Stock Exchange isn’t even the second-largest stock exchange in the world after the New York Stock Exchange. It’s the fourth (after the NASDAQ and Tokyo).
But this is totally unfair to London: the volume of equities trading done on the London Stock Exchange doesnt capture at all equities trading done in any one place, just the ones local to that economy. So of course Londons stock exchange is smaller than New Yorks: the UKs economy is much smaller than the USs. But were comparing the cities here, not the countries.
So it’s good to look at a more international measure of finance: currency markets. In terms of foreign exchange market turnover, the UK isnt just the leader, it’s still gaining ground, according to the Bank of International Settlements. In 1998, 32.6% of the worlds forex trading was done in the UK (almost all of which takes place in London), against 18.3% in the US. By 2013, the UK had grown to make up 40.9% of the global market, seeing a daily average of $2.73 trillion in turnover. Every day……
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