ICAP, the world's top broker for foreign exchange and government bonds, has tested its trading systems to handle the collapse of the eurozone and the re-emergence of national currencies. ICAP said on Monday it has been testing EBS, the world's largest foreign exchange platform, to ensure it could handle trading the Greek drachma in response to growing fears over a eurozone disintegration.
"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," said a spokesman for ICAP.
The London-based broker tested the drachma but ICAP said the tests ensured any new currency or number of currencies could be traded in the event that they withdrew from the eurozone. "We have been testing these scenarios for six months as customers became increasingly concerned by events in the eurozone," said the ICAP spokesman. Europe's top brokers and exchanges have been watching the eurozone area closely in recent weeks for signs a member may be forced to withdraw and set up its own currency, a move that would have profound effects on these firms.
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