Are Derivatives Better in Britain? McKinsey report, market pros say yes, but trade group isn't convinced.(Report)

The recent report from McKinsey & Co., which argues that New York is in danger of losing its status as the world's financial center, has received lots of attention for what it says about the market for initial public offerings: namely, that the US is seeing fewer of them because Sarbanes-Oxley legislation has made it prohibitively expensive to be a public company.

But these complaints have been heard ever since the legislation passed in 2002. Another one of McKinsey's conclusions is more original, and bears further investigation: specifically, that London beats the pants off of New York when it comes to derivatives. "London already enjoys clear leadership in the …