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Administrator- Joined
- May 11, 2013
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(The Guardian) Wall Street ramps up staffing as election nears
Banks, brokerages, investment managers and exchanges are adding staff to handle high trading volumes on and around election day with markets expected to become volatile as results come in, reports Reuters.
Political events can trigger wild gyrations that can force market participants to quickly unwind bets, raising market, liquidity and other risks that could pressure trading systems and market infrastructure.
With Democratic vice-president Kamala Harris and Republican former president Donald Trump neck-and-neck in many polls ahead of the 5 November vote, the prospect of no immediate winner being clear is heightening concerns among investors and traders, reports Reuters. There is also the risk of a contested election following Trump’s efforts to overturn his loss in 2020. Trump has indicated he might not accept the results of this election if he loses.
This election is seen as pivotal as Harris and Trump have markedly different views on policy that could have major implications for the economy, foreign relations, markets and global trade.
“We are preparing here from a market standpoint, for at least a week of uncertainty, of not knowing who that president is,” said Grant Johnsey, regional head of client solutions for Capital Markets, at Northern Trust. “This just means ensuring we have sufficient coverage to handle more volume and volatility, managing vacation schedules accordingly, and that we are prepared for intraday ups and downs as election news unfolds,” he said.
Market participants are trying to make sure they are not caught off guard by surges in volatility. Recent surprises have included when the UK voted to leave the EU in 2016, as well as when Trump defeated Hillary Clinton later that same year.
Banks, brokerages, investment managers and exchanges are adding staff to handle high trading volumes on and around election day with markets expected to become volatile as results come in, reports Reuters.
Political events can trigger wild gyrations that can force market participants to quickly unwind bets, raising market, liquidity and other risks that could pressure trading systems and market infrastructure.
With Democratic vice-president Kamala Harris and Republican former president Donald Trump neck-and-neck in many polls ahead of the 5 November vote, the prospect of no immediate winner being clear is heightening concerns among investors and traders, reports Reuters. There is also the risk of a contested election following Trump’s efforts to overturn his loss in 2020. Trump has indicated he might not accept the results of this election if he loses.
This election is seen as pivotal as Harris and Trump have markedly different views on policy that could have major implications for the economy, foreign relations, markets and global trade.
“We are preparing here from a market standpoint, for at least a week of uncertainty, of not knowing who that president is,” said Grant Johnsey, regional head of client solutions for Capital Markets, at Northern Trust. “This just means ensuring we have sufficient coverage to handle more volume and volatility, managing vacation schedules accordingly, and that we are prepared for intraday ups and downs as election news unfolds,” he said.
Market participants are trying to make sure they are not caught off guard by surges in volatility. Recent surprises have included when the UK voted to leave the EU in 2016, as well as when Trump defeated Hillary Clinton later that same year.
