Bloomberg News

Tullett Prebon Said to Prepare for Countries Exiting the Euro

December 06, 2011

Dec. 6 (Bloomberg) -- Tullett Prebon Plc, a British inter- dealer broker, is making contingency plans for the breakup of the euro and is prepared to start trading new currencies, a person familiar with the matter said.

Tullett is responding to enquiries from clients concerned about the outlook for the single currency, said the person, who declined to be identified because the preparations aren’t public. The firm would be able to begin trading the new currency within two days, the person said.

Tullett joins firms including ICAP Plc in making preparations for a possible break-up of the single currency as the region’s sovereign debt crisis spreads. European Union leaders are meeting on Friday to hammer out a plan to soothe investor concern.

ICAP has tested trading of Greece’s drachma, the firm’s chief executive officer of electronic broking, David Rutter, said today in a Bloomberg Television interview. A spokesman for Tullett declined to comment when contacted by Bloomberg News.

Inter-dealer brokers such as Tullett act as a go-between for banks that trade bonds, stocks, currencies, energy and derivatives. They typically handle more trades between banks during periods of greater market volatility. Tullett, which split off from U.K. stockbroker Collins Stewart in 2006, competes against ICAP, the biggest broker of transactions between banks.

--Editors: Keith Campbell, Francis Harris.

To contact the reporter on this story: Gavin Finch in London at gfinch@bloomberg.net

To contact the editor responsible for this story: Edward Evans at eevans3@bloomberg.net


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