As the U.K. decides on its future in or out of the European Union, currency traders and analysts thousands of miles away in Asia, will be at their desks well before dawn.
Bloomberg News reports that voting is scheduled to close at 10 p.m. in the U.K. on Thursday, or 5 a.m. in Singapore on Friday. Traders and analysts in the region’s biggest foreign-exchange center are bracing for potential turmoil in the 24-hour global foreign-exchange market as the bulk of the results are expected to be in by 10:30 a.m. in the Asian city. With the outcome too close to call based on the latest polls, they are preparing for global fallout should Britons vote to withdraw from the world’s largest trading bloc.
UBS will have a fully-staffed trading desk in Singapore by 5 a.m. on Friday as traders start work about an hour earlier than usual. At Oanda Corp., a retail foreign-exchange broker, staff will be at their desks in the city state as early as 3 a.m. In the past two years, dealers had to endure votes on Scottish independence, the Swiss National Bank’s gold policy and a Greek bailout plan, all of which had results announced outside normal trading hours in many local markets.
“Building upon those experiences, we start to understand the things that can go wrong during these times of extreme volatility,” said Anthony Hall, regional head of foreign exchange, rates and credit in Asia Pacific at UBS in Singapore. “This is definitely an event that I’ve seen more preparation for than previous ones.”
To access the complete Bloomberg News article hit the link below: