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Discussion Starter · #1 ·
Just a question since I could not read the whole report...which one of these 6 criteria is London's strongest ?

legal and political framework, economic stability, the ease of doing business, volumes of financial flow, attributes as a business center,

Do any of you have a link to MasterCard full report?


http://www.financialexpress.com/fe_full_story.php?content_id=166973

London tops as world commerce centre: MasterCard report


Posted online: Wednesday, June 13, 2007 at 0000 hours IST


JUN 12 : London tops a list of 50 cities as the world’s commerce center, beating New York, Tokyo and Chicago, a report by MasterCard Inc., the world’s second-biggest credit- card company, showed. London surpasses New York in four of six areas in the report covering economic stability, the ease of doing business, volumes of financial flows and attributes as a business center, MasterCard said in a statement on Tuesday. The study is the latest saying New York lags behind London as a global commerce centre.

“Once considered the unchallenged financial capital of the world, New York cedes to London a key dimension measuring financial transactions primarily because bond market regulations in New York affect the volume of listed sales,’’ MasterCard said in its first annual worldwide centres of commerce index. The US will lose its place as the world’s leading financial center in the next decade without legal and regulatory changes, according to report in January commissioned by New York Mayor Michael Bloomberg and Senator Charles Schumer.


The total amount of money raised in Europe so far this year is 78 % greater than the value of US offerings, according to data compiled by Bloomberg, as stricter financial-reporting requirements in New York deter some companies from listing. Bloomberg is the founder and majority owner of Bloomberg News and parent Bloomberg LP.

A survey in January by the Bank of England and the US Federal Reserve showed that London extended its lead over New York as the world’s leading market for currency trading last year, with a six-month average daily trading of $1.06 trillion, compared with $534 billion in New York. In March, a study commissioned by the City of London cited New York’s regulation as the key reason for lagging behind its European rival as the world’s top financial centre. Critics blame the Sarbanes-Oxley Act, passed in 2002, for a decline in public share sales in US markets. The US accounted for 20% of all IPOs last year, down from 35% in 2001, according to the Financial Services Forum, which represents the country’s largest banks and insurers.

Apart from scoring the highest possible rating for banking services and currency exchange regulations, London has the biggest financial services network of all cities, with more banking, financial services and insurance companies based there than any other, MasterCard said.

New York, on the other hand, has the highest value of equities trading in the world, nearly five times that of London, MasterCard said. It also has the most commodities contracts of any global city.

Tokyo led Asian rivals Hong Kong, Singapore and Seoul as the third-ranked city in the top 10. “I believe that these results were achieved by Tokyo possessing, among a spectrum of commercial attractions, an advanced urban infrastructure, and one of the safest and most secure living environments in the world,’’ Shintaro Ishihara, governor of Tokyo, said in the statement. Tokyo ranks third globally in total volume of equities traded, after New York and London, while coming in fourth in the number of commodities contracts traded, MasterCard said. The Tokyo Stock Exchange is the world’s second-largest bourse, after the New York Stock Exchange.

Hong Kong edges out Singapore for the fifth spot in the index because it has more equity transactions and a higher score related to its business climate, MasterCard said.

Amongst the top 10 cities, Chicago ranks fourth, Singapore sixth, Frankfurt is number seven while Paris, Seoul and Los Angeles are placed eighth to tenth. The MasterCard Worldwide Centers of Commerce Index was judged on six criteria: legal and political framework, economic stability, the ease of doing business, volumes of financial flow, attributes as a business center, as well as knowledge creation and information flows. Bloomberg
 

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In Time
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Yeah good for London. NYC has been a world power city for a long time, and still will be to a lesser degree, but to me, it always makes sence that London should do alot better than NYC. Been in a right location helps. It is so close to so many different countries than NYC will ever be. Plus they speak english. Just what the business world needs.
 

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Well this is nothing new really. Pre-World War II London was the undisputed financial capital of the world. New York took it's place after and due to the very strong position and growth of the USA, it continued to grow. London has now regain much of what it lost. It's strategic position and traditionally libreal markets have always made it attractive. These are critical issues esp in regards to the percieved 'liberal' market. Many Russians, and middle-eastern people therefore prefer to invest/list their stocks in London.
 

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Anyone who thinks that London has overtaken NY as the financial capital due to a Mastercard survey or due to the short-term advantage in funds raised from IPO's obviously does not work in the financial services industry or know anything about it. The major investment banks (Goldman, Lehman, Morgan Stanley, etc.) are all based in NY. NY has more of the world's 50 largest private equity firms and hedge funds, and those based in NY (particularly the former) control far more assets than anything in London.

London's short-term advantage in IPO's is due to two things: AIM is completely unregulated and therefore, it's cheaper and much easier to list there than on the NYSE, particularly in light of Sarbanes Oxley which is being pared down and will be repealed. Secondly, in an era of unprecendented, anti-American spirit, relucantance to list in the US is somewhat greater than it was. Nevertheless, NY was, is and will be the financial capital since, among scores of other reasons, it is the capital of the what is and will be the world's most dynamic economy.
 

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Discussion Starter · #7 ·
Are we talking about two different things here ..I mean... financial capital & financial center?

Anyone who thinks that London has overtaken NY as the financial capital due to a Mastercard survey or due to the short-term advantage in funds raised from IPO's obviously does not work in the financial services industry or know anything about it. The major investment banks (Goldman, Lehman, Morgan Stanley, etc.) are all based in NY. NY has more of the world's 50 largest private equity firms and hedge funds, and those based in NY (particularly the former) control far more assets than anything in London.

London's short-term advantage in IPO's is due to two things: AIM is completely unregulated and therefore, it's cheaper and much easier to list there than on the NYSE, particularly in light of Sarbanes Oxley which is being pared down and will be repealed. Secondly, in an era of unprecendented, anti-American spirit, relucantance to list in the US is somewhat greater than it was. Nevertheless, NY was, is and will be the financial capital since, among scores of other reasons, it is the capital of the what is and will be the world's most dynamic economy.
 

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Well, it's always New York, London, and Tokyo at the top. The results are not surprising.
Exactly. If Mastercard refreshed the rankings tomorrow, we might see "New York Tops as World Commerce Centre" instead. The next day, Tokyo. It all depends on when they're ranked, but they're all so close that I don't necessarily think you can consider one city a "level" ahead of the other two.
 
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