The capital ignored Brussels restrictions to record an average of 8.9 billion euros (£ 7.7 billion) of shares traded daily in June, according to data from Cboe Europe, up from 8.8 billion euros. euros in Amsterdam.
The previous month, € 9.4bn were traded daily in Amsterdam in May against around € 8.7bn in London.
The Square Mile’s resumption of first place represents a return to normality after being knocked out of pole position in January because of Brexit, when parts of the business were forcibly displaced by a Union ban European Union on the bloc’s shares to be traded outside its jurisdiction.
The return to the City was aided by the return of Swiss equity trading to London, which resumed after the UK lifted an EU-wide ban that had been in place since 2019.
Speaking to Bloomberg, who first released the numbers, Alberto Tocchio of trading firm Kairos Partners said: “The return to Swiss equity trading has helped reverse what was only a temporary phase. .
“London will soon regain its status as a hub for European and world trade and could easily benefit from its distance from restrictive EU rules. “
London’s return to number one in Europe will boost morale in the UK financial sector, which has been largely excluded from the Brexit deal and denied its vital European passport rights.
Although stock trading is only a tiny fraction of market activity, a host of commentators have said the City’s era of domination is over because of Brexit when Amsterdam overtook it in January.
The new figures come as ministers fire red tape and seek to deepen London’s ties to other global markets amid the EU’s obstruction of a financial deal.
Rishi Sunak on Thursday presented plans to boost the city’s competitiveness after giving up hope that Brussels would give the city access to EU markets.
In his first speech at Mansion House, the Chancellor said Brexit had given the city “the freedom to do things differently and better, and we intend to use it to the full”.
If London is now back in the lead, the Cboe still shows that the City’s lead over Amsterdam is much narrower than before Brexit.
In December, the trading volumes of shares in London amounted to 14.3 billion euros compared to 2.2 billion euros for Amsterdam.
Although the UK and the EU agreed to a memorandum of understanding on financial services in March, the past six months have been dominated by threats and feuds with the bloc.
Mr Sunak’s intervention on Thursday indicates that the UK no longer waited for Brussels to grant market access to UK companies, what is known as equivalence, and instead seeks to deepen its partnerships with markets outside the EU.
In a long-awaited document titled “A New Chapter for Financial Services” released on the day of Mr. Sunak Mansion House’s speech, the government outlined plans to strengthen its financial services relationship with major emerging markets such as China, India and Brazil.
He also launched consultations that could lead to the relaxation of a set of pre-Brexit rules designed to control business activity. One area reserved for reform is the European-era regulation known as Mifid 2, which is widely believed to have harmed capital markets by immobilizing businesses in bureaucracy.
Daniel Pinto, managing director of Stanhope Capital, a financial advisory firm, said the UK needs to modernize its regulatory environment to regain its place as a global hub for small business equity research, “an activity that has been decimated by Mifid 2 ”.
Exports of financial services represent £ 56 billion to the UK economy. Last month, an EY survey showed that the UK is still Europe’s most attractive destination for investments in financial services.