City Corporation shows UK remains on top of risk management

With less than two weeks to go before the UK leaves the European Union, the City of London Corporation has today [21 January 2020] launched a new report to showcase why London continues to outperform fellow international financial centres in supporting multinationals to manage a range of financial risks, including currency, interest rate, liquidity, and operational matters, as well as ensuring regulatory compliance.

London as a Centre for Management of Financial Risks, produced alongside PwC, aims to encourage overseas multinational companies to choose the UK as a place to locate their corporate treasury operations, leveraging the City’s deep capital market, wide range of financial instruments and global reach.

In particular it shows that:

  • The UK’s share of global turnover from FX trading is 43.1% compared to Singapore’s 7.6%;
  • London is the only place where every top 20 insurance and re-insurance firm is active;
  • 27% of the world’s 320 legal jurisdictions are governed by systems based on English common law;
  • London’s share of global turnover from interest rate derivatives trading is 50.2%, compared to the US at 32.2%.

The report – which compares the UK against fellow international financial centres – is expected to be used to promote the UK financial and professional services sector during visits overseas by the Lord Mayor of the City of London and Policy Chair this year, in countries including India and China.

Lord Mayor of the City of London William Russell said:

“Ten days away from our formal exit from the EU, this important report reiterates the UK’s strengths in financial and professional services.

“It is essential we continue to reaffirm why firms should come here to do business.

“I look forward to showcasing its findings on my visits overseas to promote the UK financial sector.”

City of London Corporation Policy Chair Catherine McGuinness said:

“The UK’s unique capabilities as an international financial centre mean it is perfectly positioned to help multinationals mitigate a diverse range of financial risks.

“With an extensive network of 250 international banks and channelling 43% of global forex trading, we can support multinationals in managing currency and liquidity risks on a global scale.

“My message to those multinationals looking to grow and expand is come to the UK and see what we have to offer.”

Tax partner at PwC Graham Robinson said:

"The report underlines how the UK continues to be the pre-eminent market for financial services as well as a prime location for international businesses to access corporate finance and treasury markets and expertise.

“Despite the uncertainty of recent years, the UK has provided an environment in which multinationals are able to thrive. Optimising this competitiveness will clearly be of paramount importance in the years to come.”

Earlier this year the City of London Corporation launched The Global City, a campaign to showcase the UK's offer for financial and professional services focussed on unmatched connectivity, a huge and diverse talent pool, a business friendly environment and a culture of innovation.

Notes to editors

The City of London Corporation is the governing body of the Square Mile dedicated to a vibrant and thriving City, supporting a diverse and sustainable London within a globally-successful UK. 

For more information contact:
Nathan Rodgers

Media Officer
City of London Corporation
44 (0)207 332 3451
44(0)7864 625086