AUS
NZ
UK
CA
USA
IND
_06_16_2026_04_54_27_535266.jpg)
Summary
- Daily trading in the Netherlands share market shot up to roughly €9.2billion in January.
- Trading volumes in London dropped to €8.6 billion from €17.5billion.
Brexit’s impact on the UK has started showing up. Amsterdam became Europe’s largest share trading centre last month, replacing London for the first time.
Experts have for long pointed out the economic impact of the UK moving out of the European Union (EU) would gradually become evident and could also involve job losses and blows to businesses.
The first blow to business has come in the form of Amsterdam replacing London as Europe’s most favoured share market hub. Daily trading in the Netherlands share market shot up to roughly €9.2billion in January, as trading volumes in London dropped to €8.6 billion from €17.5billion.
EU-based financial institutions can no longer trade in London and can now trade their stocks only within the union. Post exit from the EU, Brussels has not recognised London’s regulatory supervision of being the same standard and following similar protocols as its own.
Places like Paris and Dublin have also benefitted from slight upticks seen in the business in January through the EU division of Aquis and Liquidnet, respectively.
Following this, London has permitted the trading of stocks of companies like Nestlé and Roche, which were not allowed on exchanges of the EU.
Do numbers lie?
Amsterdam seems to be the biggest gainer from Brexit. Not just a shift in share trading volumes, but the Netherlands has also attracted some of the business from sovereign debt trading, as well from trade in swaps. By this year, Netherlands will also have traction from derivatives trading, according to media reports.
Others have said that a shift in trading volume does not automatically translate into hordes of jobs moving out of the UK and London can now build a new kind of trading business.
Some experts have opined that beyond these big numbers, the story is different. The innovation necessary to translate trade into money is still largely to be found more in London, experts feel.
It is widely believed that rules pertaining to financial services are still being negotiated between the EU and the UK and a deal could be managed on the same. Experts believe that the UK might be able to clinch the much talked about provision of equivalence from the EU. Equivalence testifies that local rules and regulations are equal to the standards adhered to by the EU and UK-based companies would not require local offices to have operations in the EU.
Observers have also pointed out that the EU not granting equivalence provision to the UK in financial services is leading to bifurcating markets and that EU and UK have similar protocols pertaining to financial services and hence EU must grant it to the UK. However, some other experts have opined that the UK too is not keen on acquiring an equivalence in financial services because it believes that its markets are better governed by the Treasury and the Bank of England, than Brussels. They have said that an equivalence can be rescinded with a one-month notice and has no surety.
Some other experts have pointed out that there needs to be clarity on whether the EU would recognize London clearing houses after the grace period comes to an end and whether asset managers would be permitted to deal with the unions assets while being based out of the UK.
