Monday 16 April 2007
City probe into competitiveness of London’s financial market
infrastructure highlights “openness” as critical issue
An in-depth analytical survey of London’s financial market
infrastructure has highlighted the need to remain open to
competition at all costs and reports that City players have no fear
of international ownership of this infrastructure – as long as it
is all regulated here.
The survey, released today, concentrates on market
infrastructure issues. But it reports that many respondents
raised concerns not only about the tax environment deteriorating
but also about London's aging public transport system.
Maintaining a full set of markets and institutions and retaining
the independent Financial Services Authority were also seen as
important factors, especially as a new legislative landscape
unfurled and competition intensified.
The report, The Competitive Impact of London’s Financial
Market Infrastructure, is published by the City of London
Corporation under its remit to commission independent research as a
tool to analyse factors driving the UK-based financial services
industry.
The authors are Peter Cox and Lynton Jones of Bourse Consult,
with statistical analysis by Stephen Wells.
Michael Snyder, Policy and Resources Chairman of the City of
London Corporation, said: “This survey of the mechanics of London’s
financial market infrastructure will illuminate debate
for many key players, including the members of the Chancellor’s
High Level City Competitiveness Group.
“London’s lead is often referred to but not always understood –
a situation that this report remedies by revealing close
detail on just exactly how the markets work – and by implication
how they can be helped to work better.”
The report surveys in-depth the workings of the City, lifting
the curtain on the
21st century mechanisms through which the global financial markets
operate and showing how prices are set and how buyers and sellers
strike their contracts and discharge and settle their
obligations.
Key findings include the new phenomena of “server cluster” as
the City players seek to site their computers ever closer to key
data-streams in order to win nanosecond advantage,
The report also includes a detailed historical picture of how
the City's financial infrastructure developed, particularly since
“Big Bang” in 1986.
Ends
Download the report
Notes for editors
The City of London Corporation provides local government
services for the City of London, the financial and commercial heart
of the UK. We are committed to maintaining and enhancing the status
of the business City as the world's leading international financial
and business centre through its policies and services. Our
responsibilities also extend far beyond the City boundaries and
include management of the Barbican Centre, Central Criminal Court
at the Old Bailey, Epping Forest, Hampstead Heath, three wholesale
food markets, as well as acting as the London Port Health
Authority.