Brexit would threaten London FX market dominance: poll

[LONDON] London's role as the world's main currency trading hub would be threatened by a British exit from the European Union, with Frankfurt, Paris, New York and Dublin the main beneficiaries, a survey of 12,000 market professionals showed on Wednesday.

The poll of worldwide members of the ACI Financial Market Association put Frankfurt as the centre most likely to benefit if Britain votes to leave in the June 23 referendum, echoing warnings from a number of major banks.

London's domination of around half of the US$5 trillion a day global currency market has been at the heart of the huge investments made by the world's major lenders in the city.

A number of European officials have already warned that the European Central Bank could not allow it to continue as the main trading hub for the euro were the country to leave the EU.

The poll also showed that 80 per cent of respondents believed Britain would vote to stay in the 28-member bloc.

"London is right out in front for this market and there is clearly some concern among traders that a Brexit would be detrimental to the city's position as the main currency trading hub," Nick Murray-Leslie, head of the Chatsworth Communications agency who conducted the poll, said.

REUTERS