Euro Zone Breakup: The Day After.

By Vincent Cignarella

Everett

You are asleep, tucked snugly in bed in New York. It is 2:00 a.m. on Monday morning. Suddenly the phone rings, and it’s the office cell phone. You are shocked out of bed. Your heart is racing.

When that phone rings at that time of the morning, it cannot be a good thing.

The FX manager on the other end of the line is screaming, “Greece has left the euro, the rest of the periphery is teetering, the markets are panicked. Get into the office. Now!”

A bit dramatic. An impossible scenario, most market participants still think. But that’s not stopping numerous banks, brokers and clearing houses from preparing contingency plans for such an event. They are thinking about how to trade the old legacy currencies, figuring out ways to make settlements in drachma rather than euros, etc.Read More.