Voice of experience: Invast Global senior executive Geoff Last on Brexit related FX volatility
With 39 years of industry experience, Geoff Last has seen many events that have affected global markets. Here is his view on the Pound’s volatility post EU referendum.
As the result of the UK referendum on the country’s membership of the European Union begins to be digested on both sides of the English Channel and reflected in the movements of the major currencies, the FX industry’s take on the forthcoming potential volatility in the markets is becoming clear.
Some of the largest companies in the FX industry are beginning to take a long term view, and having made prudent steps toward safeguarding their clients against potential negative balances by raising margin requirements, and in doing so also ensuring the stability of their commercial operations during the Brexit period, now the result is known and the Pound has begun to rapidly fluctuate in value against other majors, the perspective of highly experienced senior executives is vital.
Today, FinanceFeeds spoke to Geoff Last, Director of Institutional Liquidity Sales at Invast Global in Australia, who explained “We are not seeing the panic that we have seen follow past “surprise” events – mainly because the authorities seem to be proactive in helping smooth movements – but also because market participants have learnt their lessons from the past (most brokers raised margins and restricted position limits – most traders have themselves chosen to await stability/liquidity before reentering the market).
It shows a maturing of the industry. Overall we think we are likely to experience a period of opportunity, with currencies fluctuating across wide ranges as market participants take time analysing the implications for the UK and European economies. There have been few times in my 39 year career that have offered so much opportunity for traders” – Geoff Last, Director of Institutional Liquidity Sales, Invast Global, Australia.
Indeed, some very shrewd measures were taken by some of the most prominent companies in this industry. The British pound took a plunge during the very early hours of this morning, arriving at its lowest point in 31 years, after having risen yesterday to its highest value since pre-financial crisis 2008.
This is likely to be a temporary glitch, and indeed we are inclined to agree with Mr. Last’s perspective on how the period immediately after the referendum will manifest itself in the markets.