ICAP braces for euro fail

 
Kasmira Jefford
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ICAP, the world’s top broker for foreign exchange and government bonds, said yesterday that it had been testing its trading systems in the event of a possible break-up of the euro.

ICAP has been prepping its spot foreign exchange platform, EBS, over the past six months to ensure it could handle trading the Greek drachma after growing fears over the Eurozone’s mounting debt crisis.

“We have contingency tested the Greek drachma in currency pairs versus the euro and the US Dollar because our customers have expressed concerns about how the Eurozone situation will play out and we have to be prepared for every eventuality,” a spokesman for ICAP said yesterday.

The London-based interdealer broker has only tested the drachma but said its tests ensured it was prepared to react quickly if one or more currencies were to withdraw from the Eurozone.

Europe’s top brokers and exchanges have been watching the region closely in recent weeks for signs a member may be forced to exit.

Currency settlement system CLS Bank has also been running “stress tests” to prepare for a dissolution of the euro, sources reported last week.