[Re: New ‘purpose-built’ $1bn UK clearing bank launches in London, yesterday]
Whether or not the newly-launched Bank of London achieves the disruption of clearing services its founders promise, its establishment is still a hugely positive message for Britain to send to the world.
Post-Brexit, many were concerned in relation to the City’s forecast loss of status, and prophesying a slow bleed of jobs and services to continental Europe – clearing especially. As this shows, that prediction is unfounded.
Currently, London is booming.
IPOs have just seen a record year since 2006. FX and derivatives trading and the expanding market for green bonds show confidence is higher than it has been for decades.
The UK has always led the way in financial services, and – even in the teeth of a pandemic – the evidence is clear that this continues.
Healthy markets need competition; if the new bank is able to follow through on ambitious promises it will ultimately be good for the sector as a whole.
But the main takeaway from yesterday’s news is that London remains the centre for clearing – as it has since 1770.
Paris, Frankfurt and Rotterdam – to name a few – may have their eyes on that prize, but still have some way to go.