The City has outlined its importance to international finance ahead of crunch EU talks with a report that shows it continues to outperform other financial sectors in helping firms tackle risk.
It comes as a debate rages over how close the UK should stay to the EU after Brexit. Chancellor Sajid Javid at the weekend said it would diverge and not be a “rule-taker”, prompting a backlash from industry groups who said supply chains would be threatened.
Yet Javid’s comments that financial services trade with the EU should be on the basis of “outcome-based” equivalence of rules won praise from City figures, although many banks are nervous about the changing relationship.
The report from the City of London Corporation and PwC, released today, showed that the UK financial sector continues to dominate foreign exchange trade, with a 43.1 per cent share of global turnover.
It said London is the only place where every top 20 insurance and reinsurance firm is active and that London’s share of global turnover from interest rate derivatives trading is 50.2 per cent, compared to the US at 32.2 per cent.
Lord mayor of the City of London William Russell said: “Ten days away from our formal exit from the EU, this important report reiterates the UK’s strengths in financial and professional services.”
“It is essential we continue to reaffirm why firms should come here to do business.”
The lord mayor is expected to use the report to promote UK financial services on trips abroad this year, to countries including India and China, as the City seeks to keep itself at the top of the government’s agenda.
City of London Corporation policy chair Catherine McGuinness said the Square Mile must show that “it is perfectly positioned to help multinationals mitigate a diverse range of financial risks”.