The Updated Global Financial Centres Index Shows London Maintaining Its Lead Over New York Despite The Lamentable Public Transport Infrastructure

The City of London’s Global Financial Centres Index (GFCI) 2, released this week, rates the competitiveness of the world’s top financial centres. The report ranks London and New York as the only two truly global financial centres, well ahead of the two Asian centres of Hong Kong (3rd place) and Singapore (4th place). Zurich is in 5th place; just ahead of Frankfurt.

Since the first edition of the GFCI in March 2007, London has maintained its lead over New York in all five areas of competitiveness – people, business environment, market access, infrastructure and general competitiveness.

Business infrastructure and transport links are critical indicators of financial centre competitiveness. GFCI 2 highlights growing concerns over London’s crumbling infrastructure, with many survey respondents pointing out that failure to address overcrowding, high prices, delays and complexity in the system are already tarnishing London’s reputation.

Michael Snyder, Chairman of the Policy and Resources Committee at the City of London, said; “To maintain competitiveness, the UK must take action now to address our lamentable public transport and below-par aviation hubs. Crossrail, allowances for two carry-on bags at Heathrow, more security staff and the resolution of industrial disputes before they escalate to debilitating strikes are critical in keeping London at the top of its game in the eyes of business travellers.”

The GFCI Top Twenty:

Other conclusions of the research include that London now attracts a greater proportion of foreign IPOs than New York and is contesting New York’s dominance in private equity and hedge funds (21% of global hedge funds are now managed in London). The competitiveness of New York continues to be adversely affected by Sarbanes-Oxley, the propensity to litigation and high brokerage charges.

Mark Yeandle one of the authors of the report said: “London and New York continue to be the only two global financial centres, they may be competitors, but they have different strengths and weaknesses. Financial centre competitiveness is not a ‘zero-sum’ game where one centre’s gain is another’s loss. London and New York are complementary to each other and each thrives on the other’s success”.

The GFCI is compiled by the Z/Yen Group for the City of London. It uses data from 54 published indices as well as the results of an online questionnaire completed by 825 financial services professionals.

Future GFCI updates will chart the changes in competitiveness of financial centres and identify changes in the perceptions of financial services professionals. Updates will pay particular attention to the fortunes of Dubai, Beijing, Shanghai and Mumbai, the centres identified as most likely to increase in importance over the next two to three years

Please participate in the GFCI by rating the financial centres you are familiar with at: http://www.zyen.com/Activities/On-line%20surveys/GFCI.htm