European Capital Markets

The authors present a comprehensive set of performance measures for financial centers, and compares the competitive positions of Frankfurt, London, and Paris. London appears to be ahead in most product areas. Interestingly, its strength appears to be growing rapidly in the highly commoditized, low margin areas of business such as forex trading. The authors conclude that London 's source of strength is beginning to be undermined, but that it is unlikely that either Frankfurt or Paris will "overtake" London anytime soon. The city's strength is unlikely to be undermined by decisions to opt in or out of EMU.