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| Britain |
| UK faces run on pound within hours of polling as futures exchange opens early |
| 2010-05-02 |
| Britain could be battered by speculators on the international money markets within hours of the election result as the futures market in bonds and sterling has agreed to open for the first time at 1am on Friday. The City is concerned that a hung parliament could mean Britain is unable to take rapid action to cut its budget deficit and force a similar battle with bond dealers that the one that forced Greece to resort to €110bn (£95bn) a bailout package put together by the eurozone countries and the International Monetary Fund. Usually bond dealers would have to wait until the markets opened on the morning after an election to begin trading but the futures market in gilts – UK government bonds – is opening only three hours after the polls close and seven hours earlier than usual. The futures markets play a key role in determining how much interest the government pays on its debts and traders will be able to buy and sell futures contracts as constituency results are announced and the balance of power shifts between the three main parties. Euronext Liffe, which runs the gilts futures exchange, said it was the first time technology had allowed the market to open early. A spokesman for Liffe said traders would also be allowed to bet on a collapse in sterling, which the shadow chancellor, George Osborne, has warned is likely if the outcome of the election is a hung parliament. Hundreds of millions of pounds could be won or lost during Friday morning as bond traders and foreign exchange dealers attempt to second guess the election. |
| Posted by:tipper |
| #2 Well, aint I the lucky one to have no money, nothing to lose. |
| Posted by: Rhodesiafever 2010-05-02 20:19 |
| #1 I wonder what George Soros will be doing then? |
| Posted by: Anguper Hupomosing9418 2010-05-02 18:35 |