LONDON, Jan. 21 (Xinhua) -- In a bid to address uncertainties brought by Brexit, the City of London Corporation released Tuesday a report to showcase London's advantages in supporting multinationals to manage financial risks.
Entitled "London as a Centre for Management of Financial Risks", the report said Britain represented 43.1 percent of global turnover from foreign exchange trading, higher than the United States' 16.5 percent and Singapore's 7.6 percent.
Jointly produced by the City of London Corporation and PwC, the report said Britain accounts for 39 percent of global secondary bond market turnover, with London being "the only place" where top 20 insurance and re-insurance firms are active.
Highlighting the unique role of English common law on the globe, the report said London's share of global turnover from interest rate derivatives trading is 50.2 percent, 18 percent higher than the United States.
Ten days away from Britain's exit from the European Union (EU) on Jan. 31, it is "essential we continue to reaffirm why firms should come here to do business," said Lord Mayor of the City of London William Russell, who is about to kick off an overseas trip to promote Britain's financial sector in countries including China.
Graham Robinson, tax partner at PwC, said "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."
The report marks a fresh effort by the City of London to defend its role as a global financial hub amid rising anxieties over its future after Brexit.
Holding a majority of 80-seat in the House of Commons, British Prime Minister Boris Johnson is set to win the sprint to leave the EU on Jan. 31. However, any "leaving party" champagne celebrations will be short-lived as that "victory" is just phase one of a longer race -- reaching a trade deal with the EU by the end of 2020.
If a trade deal is not agreed by then -- and without agreed extension -- it would leave Britain trading on World Trade Organization terms with the EU, with the likelihood of tariffs on imports and exports. Financial services companies are transferring assets worth around 1 trillion pounds (1.3 trillion U.S. dollars) and relocating some 7,000 jobs from London to other European cities due to Brexit, according to a survey by consultants EY last year.
"Overall we think the fact that the transition period is likely to be only a year is going to leave quite a lot of uncertainty for businesses. The possibility of a cliff edge at the end of the year is quite high, which is not great news. It is not something we're likely to see resolved early. It is likely to drag until much later," said Yael Selfin, chief economist at KPMG UK.
