Published by Zeb BhamLondon has lost its position as the largest financial trading centre in the world and must now hold the title jointly with New York.According to a new report commissioned by the City of London Corporation and carried out by Z/Yen, London dropped 15 points in the global rankings since the survey was last carried out in September, with higher taxes and stricter regulations weighing on activity.A copy of the report obtained by the Financial Times shows that the two cities are now on level pegging with ratings of 775, above Hong Kong, Singapore and Tokyo in the top five."Retaining a fair, consistent and predictable tax policy and supervisory environment is critical to retaining London's role as a global centre for a large range of financial services," said Stuart Fraser, chairman of the City’s policy and resources committee.The report is likely to inspire broad forex hedging on sterling this morning, while the announcement that Moody's may downgrade Britain's AAA sovereign debt rating is also weighing on the pound.For more information on international payments, visit our Smart FX site