ICAP and other major institutions prepare themselves for Greek Drachma trading

Apparently major banks and broker dealers are already preparing themselves for the Greek withdrawal from Eurozone and a return to Greek Drachma currency scenario as according to multiple reports ICAP and others are testing their electronic trading platforms.

ICAP is the latest firm to disclose such preparations, joining the growing ranks of banks, governments and other key players in the global financial system whose officials are worried enough about the stability of the common currency to be making contingency plans for a possible break-up.

Regardless of the financial turmoil such move will surely create this posses an opportunity as well as a headache for retail Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term brokers. Such move would require them to add several additional currency pairs to their platform (remember that Metatrader has a limit on pairs, and some brokers may already be maxed out), plug Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term which is a big headache as nobody really provides a proven feed for a currency that still doesn't exist and then test it all. On the other hand those who can make market on Drachma pairs will be in a great position to benefit from all the liquidity flowing their way and adding another currency pair may attract new traders and create more volume for brokers.

Hopefully however for the sake of stability of financial markets (and my pension) this is just a hypothetical scenario.

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