In Derivatives Trading, London Is King

The city’s dominant position in derivatives may be difficult to undo in the event of Brexit.

London is a player in the markets for gold, oil and bonds. But in derivatives, it is king, and that is what Brexit will put to the test.

Of the $9.4 trillion in daily global derivatives trades tracked by the Bank for International Settlements, 43% take place in the U.K. That isn’t because they are denominated in pounds—the U.K. handles four times as much trading in euro-denominated derivatives as France and Germany combined.