The City of London is losing its glamor as many businesses turn their attention to other metropolitan areas such as New York. London-listed firms see New York as a particularly attractive market for listing, with many of the city’s brokerages frequently receiving inquiries from clients looking for ways to get their business across the Atlantic.

Just this week it became known that two leading companies have chosen the US for listing their shares. These are CRH, one of Europe’s largest building materials companies, and the British technology arm of Softbank Arm. This is another blow to the British government, which is trying to make London attractive again after Brexit. The leading banker said moving public listings to markets other than London is currently the most talked about issue among businesses.

The main reasons for companies fleeing the US are higher valuations and access to more liquid markets.

At the same time, he added that almost all clients with income outside the UK are considering moving abroad. Even members of the FTSE 100 are considering a listing on the New York Stock Exchange, sources speaking to Bloomberg on condition of anonymity said. “If London fails to regain its position as a strong financial center, then the flight from London will continue, and in particular the trend towards New York,” says Oliver Lazenby, partner at Freshfields Bruckhaus Deringer.

The main reasons for the flight of British firms to the US are higher valuations, access to more liquid and capital markets and less control over directors’ remuneration.

Meanwhile, the size of the UK stock market has been steadily shrinking over the past 16 years, with the total market capitalization of London-listed shares falling from a peak of £4.3 trillion. dollars in 2007 to about 3 trillion. this year. The UK also lost the crown of Europe’s largest stock market to Paris last year, damaging the reputation of British financial services. According to Bloomberg, over the same period, the US stock market has more than doubled, and its capitalization has increased from 19 trillion. up to 43 trillion dollars. Even as bank executives wonder if Brexit will lead to the decline of the city, the British capital is already leaving business, people, assets and securities. According to an Ernst & Young analysis published in March last year, 24 financial sector companies have already announced their intention to join the EU. £1.3 trillion, the equivalent of £1.46 trillion. Euro. At the same time, 2/5 of the largest British financial companies are planning to transfer part of their activities and part of their staff to the EU countries. At the same time, the European Banking Authority (EBA) believes that the number of bank managers in the EU with fees of more than one million euros has skyrocketed and is approaching 2000. In particular, they make up 1957 people, while in 2020 there were only 1383 managers.