Markets in London are bracing for what could be a wild ride in everything from foreign-exchange to stock trading as Britin votes on European Union membership.
Voting booths will close at 10 p.m. on June 23, and the City's traders could face anything from a market maelstrom to a whimper as results trickle in during the early morning hours on Friday.
Bank of America expects a 10 percent downward jolt in equities if the country votes to leave the EU. Billionaire investor George Soros warned that the pound, the bellwether trade for Brexit watchers, could plunge more than 20 percent should voters back leaving.
ICAP operates vital Treasury- and currency-trading venues and will have extra staff on hand. Bats Global Markets Inc., which runs the biggest pan-European stock market, has tested its systems to withstand volumes that are multiples beyond what it has experienced. Euronext and Tradeweb Markets are also taking extra measures, while banks have warned clients that some services may be limited.
"Everyone is certainly beefing up their staffing around the time of the results and the hours that follow," said Michael O'Brien, director of global trading at Boston-based mutual-fund company Eaton Vance Corp., who plans to stay on his company's trading floor until the results are known. "Banks are all doing it, I suspect most asset managers are doing it, and we're no different."