The City of Londons Financial Services and Markets :: Essays Papers

The City of Londons Financial Services and Markets1. The City of Londons financial Services and MarketsThe City of London is one of the creations three conduct financial centres, along with Tokyo and New York, and is by faraway the largest in Europe. While New York and Tokyo rely on very large domestic economies to fuel their business, Londons success can be attributed to its international business. Major financial institutions and markets in the City include the Bank of England, the London standard Exchange, Lloyds insurance market, and the London International Financial Futures and Options Exchange.1.1 Facts and figures of Britains financial services industry There be more foreign banks in London than in any other city in the world 555 branches, subsidiaries and representative offices at the end of February 1999. Financial services account for almost 7 per cent of Britains Gross Domestic Product (GDP). Net overseas earnings of Britains financial sector reached a record 2 5,200 million in 1997. The London Stock Exchange is the largest market in the world for duty foreign equities, accounting for 63 per cent of global turnover. London is one of the worlds three major international bond centres. Some 70 per cent of international bond trading in the Euromarket take place there. It has by far the biggest foreign exchange market in the world, handling intimately 32 per cent of worldwide dealing, and with an average daily turnover, which is more than that of New York, and Tokyo combined. It is one of the worlds largest international insurance markets, with a leading share of aviation and marine insurance. It is the largest fund management centre. It is the worlds most important centre for advice on privatisation.Supervision and regulation2. Financial markets2.1 The Stock ExchangeThis is one of the worlds oldest marketplaces for the buying and selling of shares, but its advanced trading systems mean it is also one of the most modern. It is th e worlds leading marketplace for international shares more international companies choose to list in London than on any other exchange. It therefore plays a alert role in maintaining Londons position as a major financial centre.The main market is where most British and international shares are listed, while the Alternative Investment Market (AIM), established in 1995, is for younger and fast-growing businesses.