London traders brace for biggest night since ‘Black Wednesday’
The world’s biggest banks including Citi and Goldman Sachs will draft in senior traders to work through the night following Britain’s referendum on EU membership, set to be among the most volatile 24 hours for markets in a quarter of a century.
A vote to leave the European Union on 23 June would spook investors by undermining post-World War Two attempts at European integration and placing a question mark over the future of the United Kingdom and its $2.9 trillion economy.
Citi, Deutsche Bank, JPMorgan, Goldman Sachs, HSBC, Barclays, Royal Bank of Scotland and Lloyds are among those banks planning to have senior staff and traders working or on call in London as results start to dribble in after polls close at 21:00 GMT, according to the sources.
Jamie Dimon, chief executive officer of JPMorgan Chase & Co, told employees on a visit to Britain this month that if the vote was to leave the EU, the bank would have to have “teams of people thrown on what that means”.
“We won’t know what it means: there is a wide range of outcomes,” Dimon, a supporter of Britain’s membership who has warned of job cuts at JPMorgan in Britain if there is an “Out” vote, said in the broadcast speech.
A vote to leave could unleash turmoil on foreign exchange, equity and bond markets, spoiling bets across asset classes and potentially testing the infrastructure of Western markets such as computer systems, stock exchanges and clearing houses.
Depending on the results from across the United Kingdom, the night of 23 June and early morning of 24 June could rank as one of the most volatile nights in the history of the London market.
London accounts for 41 percent of global turnover in the U$5.3 trillion-a-day foreign exchange market, more than double the turnover in the United States and far more than the 3 percent of its closest EU competitors, France and Switzerland.
“All the traders are going to be in ... They don’t like missing big moments, if there’s going to be one, they want to be at their desks,” said a senior source at a major bank based in the Canary Wharf financial district of London.
Some banks are planning the night down to the smallest detail to keep their traders on top form - laying on all night catering and booking nearby hotels to offer temporary respite.
“It is the biggest planned risk event that anyone can remember, so everyone is going to be involved. The question is just when you try and get some sleep,” said one senior foreign exchange trader.
– Nampa/Reuters
A vote to leave the European Union on 23 June would spook investors by undermining post-World War Two attempts at European integration and placing a question mark over the future of the United Kingdom and its $2.9 trillion economy.
Citi, Deutsche Bank, JPMorgan, Goldman Sachs, HSBC, Barclays, Royal Bank of Scotland and Lloyds are among those banks planning to have senior staff and traders working or on call in London as results start to dribble in after polls close at 21:00 GMT, according to the sources.
Jamie Dimon, chief executive officer of JPMorgan Chase & Co, told employees on a visit to Britain this month that if the vote was to leave the EU, the bank would have to have “teams of people thrown on what that means”.
“We won’t know what it means: there is a wide range of outcomes,” Dimon, a supporter of Britain’s membership who has warned of job cuts at JPMorgan in Britain if there is an “Out” vote, said in the broadcast speech.
A vote to leave could unleash turmoil on foreign exchange, equity and bond markets, spoiling bets across asset classes and potentially testing the infrastructure of Western markets such as computer systems, stock exchanges and clearing houses.
Depending on the results from across the United Kingdom, the night of 23 June and early morning of 24 June could rank as one of the most volatile nights in the history of the London market.
London accounts for 41 percent of global turnover in the U$5.3 trillion-a-day foreign exchange market, more than double the turnover in the United States and far more than the 3 percent of its closest EU competitors, France and Switzerland.
“All the traders are going to be in ... They don’t like missing big moments, if there’s going to be one, they want to be at their desks,” said a senior source at a major bank based in the Canary Wharf financial district of London.
Some banks are planning the night down to the smallest detail to keep their traders on top form - laying on all night catering and booking nearby hotels to offer temporary respite.
“It is the biggest planned risk event that anyone can remember, so everyone is going to be involved. The question is just when you try and get some sleep,” said one senior foreign exchange trader.
– Nampa/Reuters
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