Britain has extended its lead as the biggest centre in the world for trading foreign currencies and interest rate derivatives, defying fears that the country could lose its status due to Brexit.

The country has even seized a bigger share of the euro-denominated derivatives business, now taking 86pc of all those trades, despite EU authorities arguing these must be traded within the eurozone in the event of a no-deal Brexit.

The financial services industry still needs to do more work to get ready for a no-deal departure, according to Andrew Bailey, the head of the Financial Conduct Authority and a front-runner to become the next Governor of the Bank of England.

More than $3.5 trillion of foreign currency is traded every day in the UK, with the market centred on the City of London.

This gives Britain a 43pc share of the global market, up from 37pc three years ago, according to the Bank for International Settlements – the "central bank for central banks".