How did London become the financial capital

bullboy8

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Simple question but a hard answer to find. 3 things i want to find out really...

1. how does london attract so much funds (asset under management internationally), it must have something to do with something we did right in the past.
2. How does Londong attract so much IPO, what did we do to establish such a strong base?
3. Is London made up of Foreigners money? is so, why don't those foreigners spend their money in their own country instead of propping up someone elses?

Thanks
 
Simple question but a hard answer to find. 3 things i want to find out really...

1. how does london attract so much funds (asset under management internationally), it must have something to do with something we did right in the past.
2. How does Londong attract so much IPO, what did we do to establish such a strong base?
3. Is London made up of Foreigners money? is so, why don't those foreigners spend their money in their own country instead of propping up someone elses?

Thanks

It's Thatcher wot dunnit. Then the Bankers (yes, Bankers) abused it.
 
At least two reasons I can think of, but it's all about ancient history, specifically, the 60s.

1) Past sad sins of the US govt in the 60s (e.g. Interest Equalization Tax of 1963, Voluntary Foreign Credit Restraint of 1965, Regulation Q)

2) The other component was the Cold War. Countries like the Soviet Union held USD, but didn't want to deposit them in the US. London offered an offshore mkt for USD that worked for everyone. This isn't my idea, but I think it's a good 'un.
 
.....Industrial Revolution - manufacture of world class Industrial machinery....exported world over...

.....Empire days - Ships from world over brought their wares.....Chinese Junks in east end....Lloyds - a small coffee house that used to attract 'insurers' became world's shipping insurance company.....

....World War and Euro Dollars...

...And location....on Outskirts of Europe....Safe place to 'store' money.....Like Switzerland is located on borders of France, Germany and Italy....

.........

.............

....Then came Thatcher.....
 
was also centre for bond trading, a lot of countries used to issue their bonds here and they were issued in sterling i believe, i think this begun mid 19th countries like brazil, argentina, mexico i think...so obviously london became a place people came for finance.
Also Nathan Rothschild was kicking about in london too and he was financing/organizing/trading debt for countries/kings etc after 1815ish, although only an individual he did have a role to play i think in making London a place for finance.
 
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Benign timezone has always been a factor as well. That's a big part of why it's still the world's leading centre for FX for example. Straddles Asia / US
 
1) Past sad sins of the US govt in the 60s (e.g. Interest Equalization Tax of 1963, Voluntary Foreign Credit Restraint of 1965, Regulation Q)

And how about the new sins in the 21st centuries like banning hedging and stop orders in forex trading?
 
.....Empire days - Ships from world over brought their wares.....

Do you know why most future contracts expire every three months?
That was the time that took for a ship to bring gold from SouthAmerica to London :smart:

All the reason exposed could be right, i don't know.
But don't forget this one:


The Spanish Armada ("Great and Most Merry Navy" or Armada Invencible, "Invincible Navy") was the Spanish fleet that sailed against England under the command of the Duke of Medina Sidonia in 1588, with the intention of overthrowing England's Elizabeth I.

Philip II of Spain considered the Protestant Elizabeth a heretic and illegitimate ruler of England. He had supported plots to have her overthrown in favor of her Catholic cousin Mary, Queen of Scots.

Elizabeth supported the Dutch Revolt against Spain. In retaliation, Philip planned an expedition to invade and conquer England, thereby suppressing support for the United Provinces— that part of the Low Countries not under Spanish domination — and cutting off attacks by the English against Spanish possessions in the New World and against the Atlantic treasure fleets.

The fleet set out with 22 warships of the Spanish Royal Navy and 108 converted merchant vessels, with the intention of sailing through the English Channel to anchor off the coast of Flanders, where the Duke of Parma's army of tercios would stand ready for an invasion of the south-east of England.

The Armada achieved its first goal. But while awaiting communications from Parma's army, it was driven from its anchorage by an English fire ship attack, and in the ensuing battle at Gravelines the Spanish were forced to abandon their rendezvous with Parma's army.

The Armada managed to regroup. A return voyage to Spain was plotted, and the fleet sailed into the Atlantic, past Ireland. But severe storms disrupted the fleet's course.

Of the fleet's initial complement, about 50 vessels failed to make it back to Spain. The expedition was the largest engagement of the undeclared Anglo–Spanish War (1585–1604).

The defeat of the Spanish Armada led to the Drake–Norris Expedition of 1589, also known as the English Armada against Spanish possessions in the New World and against the Atlantic treasure fleets.

can read much more in Spanish Armada - Wikipedia, the free encyclopedia

To summarize, UK is UK thanks to "severe storms" in the Atlantic :LOL:

I'm kidding :p
Don't get upset/angry, boys
Just a little bit of history :smart:
 
...Yes......it proves that any trading Futures and Options are based on seasons or factors like this....

....For Traders it is very important to get into minute details as to the reasons behind Furures and Options...

...Good one...

Do you know why most future contracts expire every three months?
That was the time that took for a ship to bring gold from SouthAmerica to London :smart:

All the reason exposed could be right, i don't know.
But don't forget this one:




can read much more in Spanish Armada - Wikipedia, the free encyclopedia

To summarize, UK is UK thanks to "severe storms" in the Atlantic :LOL:

I'm kidding :p
Don't get upset/angry, boys
Just a little bit of history :smart:
 
Do you know why most future contracts expire every three months?
That was the time that took for a ship to bring gold from SouthAmerica to London :smart:

All the reason exposed could be right, i don't know.
But don't forget this one:




can read much more in Spanish Armada - Wikipedia, the free encyclopedia

To summarize, UK is UK thanks to "severe storms" in the Atlantic :LOL:

I'm kidding :p
Don't get upset/angry, boys
Just a little bit of history :smart:

u wish
 
lets not forget that we british are better than the rest of the world

Yes, specially in the kitchen :LOL: u wish

Only because you have all that delicious cookies. I can't find Oaties over here, you know which ones? I love that cookies (y)

078038.jpg
 
A little more of history.

New York, London and Hong Kong are the business hubs of the global economy. All major banks have their headquarters or offices in these cities.

They are known as nylonkong

An acronym of New York City, London, and Hong Kong. First appeared in the January 28, 2008 issue of TIME, and it was highlighted on the cover of TIME's international editions.
"...the extent to which New York City, London, and Hong Kong, three cities linked by a shared economic culture, have come to be both examples and explanations of globalization. ... Understand this network of cities — Nylonkong, we call it — and you understand our time.” ('A Tale Of Three Cities', TIME cover story by Michael Elliott, January 28, 2008.)

Read more here A Tale Of Three Cities - TIME

davos_opener_nv0128.jpg
 
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