Sunny Leone Dance Video
A financial centre is a location that is home to a cluster of nationally or internationally significant financial services providers such as banks, investment managers or stock exchanges.:1 A prominent financial centre can be described as an international financial centre or a global financial centre and is often also a global city. An offshore financial centre is typically a smaller, low-tax jurisdiction that primarily serves non-residents.
Financial centres are locations with an agglomeration of participants in financial markets and venues for these activities to take place. Participants can include financial intermediaries (such as banks), institutional investors (such as investment managers), as well as central banks. Trading activity may take place on venues such as exchanges and involve clearing houses, although many transactions take place over-the-counter (OTC), that is directly between participants. Financial centres may host companies that offer advisory services, for example relating to mergers and acquisitions, or which participate in other areas of finance, such as private equity and reinsurance.
Financial centres serve the domestic business of their home country and may also serve international business. International activity occurs when one or more of the participants in the activity is foreign to the home country of the financial centre, or when the instruments themselves are international in nature such as Eurobonds. The term international financial centre or global financial centre is sometimes used to indicate a prominent financial centre where such international or cross-border business takes place.
A paper by the International Monetary Fund offers the following definition:
International Financial Centers (IFCs)—such as London, New York, and Tokyo—are large international full-service centers with advanced settlement and payments systems, supporting large domestic economies, with deep and liquid markets where both the sources and uses of funds are diverse, and where legal and regulatory frameworks are adequate to safeguard the integrity of principal-agent relationships and supervisory functions.
The older financial centres, such as London, Amsterdam, Paris and New York, have long histories; today there are a diverse range of financial centres worldwide. While New York and London often stand out as the leading global financial centres, other established financial centres provide significant competition and several newer financial centres are developing. Despite this proliferation of financial centres, academics have discussed evidence showing increasing concentration of financial activity in the largest national and international financial centres in the 21st century.:24–34 Others have discussed the ongoing dominance of New York and London and the role linkages between these two financial centres played in the financial crisis of 2007–08.
Prior to the 1960s, there is little data available to rank financial centres.:1 In recent years many rankings have been developed and published. Two of the most relevant and widely referred to are the Global Financial Centres Index and the International Financial Centres Development Index.
Global Financial Centres Index
Main article: Global Financial Centres Index
The Central District of Hong Kong, one of the main financial centres in Asia, seen from the Peak.
The Global Financial Centres Index is compiled semiannually by the London-based British think-tank Z/Yen. London has been the top-ranked centre from the index’s inception in 2007, except from March 2014 to September 2015, when New York City led.
Courtesy : Wikipedia