The Global Financial Centres Index (GFCI 40) was published last week, and according to their rankings, New York City continues to lead the way, something that should come as no surprise. Following NYC are London, Hong Kong, Singapore, and Shanghai.
The GFCI 40 is published by the Z/Yen Group and the China Development Institute as part of a partnership originating in 2015.
Overall, New York is the only North American center in the world’s top 10, with San Francisco, Los Angeles, Chicago, Boston, and Washington, DC landing in the top 20.
London is obviously top in Europe, with Zurich landing in 10th place and Geneva in 12th. Luxembourg was in the top 20 at 17th, with no other European capital achieving a mention. Paris, Frankfurt and Dublin fell out of the top 20 this year.
Interestingly, Hong Kong was deemed the top Fintech center, followed by New York, Shenzhen, Singapore, Shanghai, and London, which lost its footing, it seems.
Leo Labeis, CEO & Founder of UK-based Regtech REGnosys, said London’s decline within the Fintech center is a reminder that past accomplishments are no guarantee of future success.
“One area where London has an opportunity to strengthen its position is RegTech. The Bank of England and FCA’s work to harmonize transaction and post-trade reporting across MiFIR, EMIR and SFTR is a good example of where the UK can lead. Reducing duplication and making reporting simpler and more consistent could save firms millions in compliance costs, while also giving regulators better quality data. But regulatory reform needs to go hand in hand with investment. If the UK wants to remain a leading global financial and technology center, there needs to be greater government support for R&D and investment in RegTech. Backing the sector will help UK firms develop and scale the technology that can make our markets more efficient, while strengthening London’s position as competition between financial centers intensifies.”