Amsterdam replaces as EU's top share trading hub
Just over two months after the transition period ended Brexit is clearly making itself felt in Europe's financial geography: Amsterdam's average daily trading volume has surged from 2.6 to 9.2 billion euros, while that of London has dropped from 17.5 billion to 8.6 billion - among other things because under the current rules EU shares traded in euros must be traded on EU exchanges. Commentators on both sides of the English Channel take a critical view of the trend.
Risky dominance of the financial sector
NRC Handelsblad warns of a potential downside to the boom:
“The London economy dominates the UK economy, and the financial sector dominates London. This heavy emphasis on financial services has already been linked to declining productivity in the country: states that make money so easily by moving it around are at risk of neglecting their industry or other innovative sectors. This could be called a variant of the Dutch disease: the neglect of productivity in the 1960s and 70s, because there was a plentiful supply of income from natural gas deposits.”
EU hurting its own interests with protectionism
Commenting in The Spectator, MP Anthony Browne is incensed by the fact that due to pressure from Brussels British banks are increasingly having to shift the clearing of their derivatives to the EU:
“It is essentially an insecure protectionist instinct, that attempts to keep out international competition rather than compete internationally. If you can't beat 'em, shut 'em out. ... The EU trying to deliberately fragment financial markets will reduce the number of services that the EU's companies have access to, and increase their costs. I know from my many discussions with them that this is a major concern to Europe's business community. The sad fact is the ultimate losers in the EU's drive for financial services protectionism is Europe's workers and families.”