Banks and stock exchanges are warning clients of difficult, volatile trading conditions in financial markets, flagging the risk of large gaps in pricing of assets when Britain votes next week on European Union membership.
Reuters reports that such warnings have become more common since the dramatic moves in the Swiss franc in January 2015, which led to conflicts between banks and their clients due to the absence of market prices for several minutes.
Letters from ING and Societe Generale show the scale of concern around Thursday's referendum and the prospect of sharp one-off moves in sterling. The outcome of the vote is seen as increasingly hard to predict.
The pan-European exchange operator Euronext said it would take special measures in anticipation of higher volatility and trading volumes. These would include widening or suspending price limits for index and equity option contracts from the open on Monday June 20 to the close on Monday June 27.
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