UK law firms, including Magic Circle law firms, have experienced increased competition from US law firms both domestically (from US law firms with a UK presence) and internationally. See also: List of largest European law firms, List of largest United Kingdom-based law firms, and List of Hong Kong law firms by size Impact of globalisation and relevance of the term Contrary to what the term Silver Circle may suggest, there is no Golden Circle. These firms have a lower turnover than the members of the Magic Circle, but consistently have an average profits per equity partner (PEP) and average revenue per lawyer (RPL) far above the UK average (and, in some instances, higher than members of the Magic Circle).

The term was coined by The Lawyer magazine in 2005 in response to the pre-existing term, Magic Circle. The Silver Circle is an informal term for perceived elite corporate law firms headquartered in the United Kingdom that are the main competitors for the Magic Circle in the United Kingdom. Arguably for this reason, it was not included in the initial Magic Circle. ДЄlso, at the time the term was coined, the corporate practice at Herbert Smith (as it was known pre-merger) was focused on privatisation work, which had dried up. Firms not included ДЄmong the large firms not included in the term are Herbert Smith Freehills Hogan Lovells Norton Rose Fulbright and Stephenson Harwood, which are less profitable. To put it in the same category as Allen & Overy, Clifford Chance, Freshfields Bruckhaus Deringer and Linklaters would be inaccurate, and to say it is in a class of its own is frankly showing the firm too much deference.' Nonetheless, other commentators still consider Slaughter and May to be a member of the Magic Circle. London-centric, sky-high PEP, top-tier work, an aura of prestige: Slaughter and May is far more like Macfarlanes than the Magic Circle quartet it is commonly lumped in with. It wrote 'Slaughters fits the silver circle bill in every respect. In 2017 The Lawyer magazine stated that it no longer considers Slaughter and May to form part of the Magic Circle due to its lower revenues and UK domestic focus. It argued that Clifford ChanceвЂ™s profitability does not match the other Magic Circle firms, and that Slaughter and May operates a different (UK-focused) model, with revenue less than half of the other Magic Circle firms. In 2013, The Lawyer argued that Clifford Chance and Slaughter and May should no longer form part of the Magic Circle. At the time, Herbert Smith was languishing in the corporate stakes, and so was consigned to the outer darkness.' It seems to be a term to describe the leading City firms and there is some truth in it.' Then corporate partner at Herbert Smith Freehills and former investment banker Henry Raine said: 'The phrase was coined by a legal magazine and referred to firms which were very strong in corporate or international work. We don't describe ourselves as a Magic Circle firm in any of our marketing material.' Linklaters' then head of corporate, David Cheyne, said: 'City law firms years ago used to provide information to each other so they could keep in touch with what was going on, but that ended yonks ago. It's mainly something that comes up when we talk to journalists or they talk to us. I don't know where the term came from or who founded it. In 2004, Slaughter and May's then senior partner, Tim Clark, said: 'It's a funny concept. Generally, the Magic Circle firms have among the highest earnings-per-partner and earnings-per-lawyer of UK-headquartered law firms. At the time, these firms were Allen & Overy Clifford Chance Freshfields Bruckhaus Deringer Linklaters and Slaughter and May. Initially, the Magic Circle's membership was described by commentators as comprising the UK firms with strong corporate practices or international work. In contrast to the Club of Nine, the Magic Circle is no informal grouping of law firms. In 1996, Stephenson Harwood was asked to leave the Club of Nine due to its stagnant performance, and the Club was disbanded in 2000. The members of the Club of Nine had an informal 'no-poaching' agreement and the firm's senior partners would meet. The Club of Nine was an informal group of law firms that comprised Allen & Overy Clifford Chance Freshfields (now Freshfields Bruckhaus Deringer) Herbert Smith (now Herbert Smith Freehills) Linklaters Lovells (now Hogan Lovells) Norton Rose (now Norton Rose Fulbright) Slaughter and May and Stephenson Harwood. The Magic Circle has been termed a 'journalistic device, coined by legal reporters in the wake of the break-up of its predecessor, the 'Club of Nine''. Clifford Chance is headquartered in Canary Wharf.

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