In January of this year, the Amsterdam Stock Exchange – which belongs to the Euronext circuit in which the Italian Stock Exchange has been included since last summer – exceeded the volume of trading taking place on the London market. The Financial Times writes it which highlights how Amsterdam has taken over almost all the volume of business lost by the United Kingdom following Brexit.
The numbers of this slip are merciless. If an average volume of shares of over 14 million shares was traded in London in December 2020, in January 2021 this amount had plummeted to less than 9 million. On the other hand, Amsterdam passed over the same period from a trading volume of 2 million securities per day to 9 million at the end of January. The other EU financial centers have also benefited from this shift, in particular Paris, which went from 4 to 6 million, Frankfurt, from 4.5 to about 6 and Milan, from 2 to 2.5 million.
This trade migration was caused by London’s ban on European brokerage firms after Brussels refused to grant British financial firms autonomy in terms of supervision and control. In the absence of a so-called equivalence in cross-border trading there has been a immediate transfer of over 6.5 million contracts per day to the European Union. A volume equal to approximately half of the total turnover normally achieved by British banks and brokers.
Analysts and top management of the banking system argue that this shift in trading towards continental markets will not turn into a loss of thousands of jobs for the City and that the effects will also be limited from the point of view of tax revenues. In any case, the city of Amsterdam is establishing itself as a major post-Brexit winner (let’s not forget the case of the transfer of the headquarters of Ema, the pharmaceutical regulatory agency, in which Amsterdam beat Milan in the tender to win the new headquarters). In fact, since the beginning of the year the Dutch capital has experienced a real boom in activities on swap contracts and in trading of sovereign debt securities, negotiations that until a few weeks ago were concentrated on the London market.