Amsterdam surpassed London as Europe’s largest share trading centre last month as the Netherlands scooped up business lost by the UK since Brexit.
An average €9.2bn shares a day were traded on Euronext Amsterdam and the Dutch arms of Cboe Europe and Turquoise in January, a more than fourfold increase from December. The surge came as volumes in London fell sharply to €8.6bn, dislodging the UK from its historic position as the main hub for the European market, according to data from Cboe Europe.
The shift was prompted by a ban on EU-based financial institutions trading in London because Brussels has not recognised UK exchanges and trading venues as having the same supervisory status as its own.
Without this so-called equivalence to ease cross-border dealing, there was an immediate shift of €6.5bn of deals to Europe at the end of last year — about half the amount of business that London banks and brokers would normally handle. (FT)
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KPMG’s UK boss steps aside KPMG UK chairman Bill Michael is stepping aside while the Big Four accountancy firm investigates “alleged comments” he made during an online meeting with staff, a spokesperson said. The Financial Times reported comments made by Michael to staff to “stop moaning” and “playing the victim card”. (FT)
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Renzi hails prospect of Draghi government Matteo Renzi, prime minister of Italy from 2014-15, told the FT that the saving of the euro and the prospect of a national unity government in Italy would not have happened without Mario Draghi, who will try to form a new governing majority. (FT)
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US brokers’ race to attract investors The era of commission-free trading has driven a relentless race to defend market share, fuelling a trading frenzy. That has empowered day traders but could be “distorting” their sense of risk, analysts say. The boom and bust of GameStop shares are a wake-up call that markets are precariously positioned, writes Carson Block, founder of Muddy Waters Capital. (FT)
UK-EU crunch talks Maros Sefcovic, EU vice-president, and Michael Gove meet in London on Thursday to address mounting concerns over the implementation of the Northern Ireland protocol. (FT)
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Labour’s Starmer has no quick fix Labour supporters rage that the UK prime minister “is going to get away” with his pandemic response. But reflex hatred of Boris Johnson blinds them to the larger political challenge, writes Robert Shrimsley. (FT)
Nouriel Roubini: bitcoin is not a hedge against tail risk Elon Musk may be buying it, but that doesn’t mean everyone else should follow suit, writes the professor of economics at NYU’s Stern School of Business, predicting the bubble will end in another bust. Ark Investment Management’s Cathie Wood said Musk’s cryptocurrency move was typical of innovators. (FT)
Silicon Valley should give every child a laptop This past year has exposed not only the cruelty of economic and social divides but also the vicious inequity of digital divides, writes Gillian Tett. Big Tech could step in to help fund laptops: they are swimming in cash and badly need to win public support. (FT)
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