Story perspectives

Brexit Reshapes UK's Financial Influence, Firms Relocate to EU

3/31/2026

Summary

Story summary

Brexit shifted the UK from transmitting to receiving financial shocks, reducing its influence on European markets.
The UK's net volatility spillover score changed from +11.8 before Brexit to -5.5.
UK pension funds are now more affected by movements in Frankfurt and Milan than in London.
London's role in European markets appears permanent after more than 440 financial firms relocated operations to the European Union (EU), taking £900 billion in assets.

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Story summary

Brexit shifted the UK from transmitting to receiving financial shocks, reducing its influence on European markets.
The UK's net volatility spillover score changed from +11.8 before Brexit to -5.5.
UK pension funds are now more affected by movements in Frankfurt and Milan than in London.
London's role in European markets appears permanent after more than 440 financial firms relocated operations to the European Union (EU), taking £900 billion in assets.