Pound traders tense as Brexit vote meets witching hour

Currency traders are taking no chances as the UK Parliament’s Brexit vote late Tuesday will come during thin liquidity heading into the market’s witching hour.

Money managers are canceling evening plans to stay at the office to ensure they don’t miss market swings like those seen during sterling’s 2016 flash crash or the chaos that followed the Swiss National Bank unexpectedly dropping its currency floor in 2015. The pound could move as much as 6 per cent in either direction depending on the vote’s outcome, strategists say.

“That’s one of the SNB lessons learned, there were a lot of less experienced people on the desk,” said Alan Schwarz, New Jersey-based CEO of FXSpotStream, a trading venue launched by banks. “I will guarantee you a lot of the most senior people at the banks will be at their desk or will be able to get to it.”