Quote:
Originally Posted by Pierre
London is major global financial centre linked to another Global financial centre, New York, directly by several trans-Atlantic fibre cables.
Latency across this link is a major issue, and one which drove the installation of new cable a couple of years ago. there is in excess of £9 billion worth of financial transactions of all kinds done every day between these to centres.
IF you move to Frankfurt, Paris, or mostly anywhere on continental Europe you are extending the distance to New York and therefore putting yourself at a disadvantage.
THe only way there would be a mass exodus of financial companies out of London is if everybody did it at the same time, and then there would be the speculators that would stay.
Chances are you will see the rise of a European financial hub, probably Frankfurt, that will be the main trader with London and other Global Hubs but London will remain as a "Global" financial hub.
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(iirc) The other point in favour of London remaining a major financial hub is the issue of time zones. London is perfectly situated to deal with both the far east and the usa.......as one goes to sleep the other wakes up......and we are in the middle.