The Association for Financial Markets in Europe (AFME), has today published the first edition of the ‘Capital Markets in the UK – Key Performance Indicators report’, tracking the progress of the United Kingdom’s capital markets against nine key performance indicators. This report is an extension of the sixth edition of AFME’s annual Capital Markets Union: Key Performance Indicators report, which tracks the development of the European capital markets ecosystem.  

The report shows a mixed picture for UK capital markets. Key strengths include; levels of  corporate and SMEs funding, the continuance of the UK as a global hub for FX and interest rate derivatives, and a vibrant FinTech sector, with the UK leading across indicators such as the growth in the number of unicorns, innovation, and funding. 

However, despite these strengths, there are several weaker indicators. For instance, the decline in new equity listings (IPOs) is striking, with a near inactive market across 2023. This is coupled with a reduction in the number of foreign listed companies on UK markets.  

Looking forward, there are signs that the UK is well placed to expand and grow its domestic markets, with a large pool of underutilised capital, a high number of tech-startups, and the expansion and still further room for growth  across key ESG metrics such as the issuance of green bonds. Further growth will be needed across these areas if the UK is to meet its climate goals and the competitiveness challenges that are faced by all economies across Europe.  

The next edition of this report, with H1 2024 data will be published in November 2024 and annual thereafter.