IFLS report: Europe's growth in 11 out of 15 financial markets outstrips US

10 October 2005

A new edition of International Financial Services London (IFSL) annual report Financial Market Trends Europe vs. US 2005, shows that the scale of many financial activities in Europe outstrips those of the US. The new report shows that the scale of many financial activities in Europe in 2004 outstrips those of the US. In the majority of cases, activities in Europe have been growing more rapidly. In 2004 financial markets in Europe were larger than the US in 8 out of 15 areas of activity featured in the IFSL report. Moreover, in 11 out of 15 markets trading and activity in Europe increased faster than the US between 1998 and 2004. Most of these were in sectors where activity in Europe is smaller than the US pointing to a significant closing of the gap between the US and Europe. Growing financial markets in Europe point to the rising global influence of London in its role as the capital of Europe’s most important wholesale markets.

Sectors where Europe is particularly strong include commercial and international banking, OTC derivatives trading, foreign exchange trading, marine insurance premiums and foreign equity turnover. The more equity based character of the American domestic market means that in activities such as equities turnover, fund management and investment banking, the US is still larger than Europe.

Report

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