Banks Warn Of Trading Issues Over EU Vote

Wednesday 22 June 2016
Banks and money transfer services are warning that a surge in market volatility surrounding Thursday's EU referendum may impact electronic trading platforms.
As holidaymakers flock to cash in on the strong pound, and buy their travel money ahead of the vote, a number of money transfer companies are suspending services.
Azimo and rival website Transferwise, have both announced they will be suspending trading on Thursday morning.
Many banks are also issuing warnings to clients, advising them to prepare for problems in trading, as they anticipate dramatic currency fluctuations in the event of Britain voting to leave the EU.
Investment bank UBS has told clients to prepare for possible hiccups and that some trades on electronic platforms could fail, due to the expected volatility and surge in trading volumes.
In its note to clients, UBS wrote: "In the event that extreme market moves occur, giving rise to limited liquidity in certain currencies, we may not be able to fill limit orders or take profit orders at the levels, or using the methodologies, expected in normally-functioning markets."
Dutch lender ING and French group Societe Generale have also been sounding the alarm and warning of market volatility and difficult trading conditions.
In a letter to its clients, Barclays says it is expecting disruption on its electronic trading platforms on Thursday and Friday, despite boosting its trading teams on referendum night.
HSBC said it will also be providing round-the-clock services. In a statement, the bank said: “With high-profile, market-moving events, we will have more staff working extended hours in one or more centres to make sure we can help our clients and manage our risk."
As money markets come under strain, the Bank of England is putting in extra resources to ensure banks have the cash they need, including foreign currencies.