BlackBerry at the ready for turmoil at the beach
By David Oakley and Paul J Davies
Published: August 11 2007 03:00 | Last updated: August 11 2007 03:00
This week saw the first potential financial crisis fought by BlackBerry on the beaches of some of the world's most exotic locations, as the electronic handsets became the essential accessory to keep many top investment bankers in touch with the unfolding events that rocked the markets.
The decision by the European Central Bank to inject €94.8bn ($130bn, £64bn) of emergency funds into the money markets on Thursday, after several institutions admitted they had suffered significant losses on credit-related investments, prompted a slew of e-mails between bankers taking their traditional August breaks in the sun and their head offices in London and New York.
Many bankers admitted the BlackBerry became their financial lifeline as they desperately sought to keep track of the market turmoil that propelled volumes on the London Stock Exchange, Euronext Liffe and Eurex, the international derivatives exchanges, to record daily levels and sent Wall Street spinning in two days of tumultuous trading.
Martin Egan, head of primary markets at BNP Paribas, said: "I'm on the beach in Dubai with my BlackBerry. It's scorching hot here but I'm sure it's pretty hot in another sense back in the office.
"Everyone is on a high state of alert, so there are going to be many people like me making sure we keep in touch - and that means keeping your BlackBerry on. Normally in August banks run on half or two-thirds of normal staff, which can make it difficult, so every banker has to remain vigilant, even if you're on the beach like me."
Geraud Charpin, head of European credit strategy at UBS who is on holiday in Aix-en-Provence, said: "I've certainly kept in touch with my office. I have a good team who I trust, but you want to know what is going on."
Jim Reid, credit strategist at Deutsche Bank, who has been away on a cricket tour in the English west country, believes that more bankers would have cancelled their holidays if it had not been for the BlackBerry.
"Ten or 15 years ago some bankers might have decided to come back to the office, but the BlackBerry means you can get involved from afar, even on the beach. I've been answering my e-mails while having tea at the cricket.
"The only time people can't get in touch with me is when I'm batting, which hasn't been very long on this tour."
Gary Jenkins, a portfolio manager at Synapse Investment Management, a hedge fund, added: "Now the banker who is holidaying in Tuscany can be just as clued in from his villa on the Mediterranean as he can by being in the office. He has his laptop, his BlackBerry, and he or she can even set up a conference call if necessary."
Bankers say the atmosphere on the trading floors has been intense, with phones constantly ringing and most working flat out to keep on top of the fast-unfolding events.
According to Edwin Rood, global head of money markets at ABN Amro, there have been frequent contacts between ECB and big market participants on the liquidity situation in the market. "The amount of liquidity being needed was larger than anybody expected," he said.
For bankers such as Mr Rood, the past couple of days have been among the busiest ever seen, with both the liquidity, or overnight market, side and the rates and foreign exchange trading businesses battling to keep up with the almost unprecedented volatility.
Anthony Jawad, who trades German bunds in the repurchase market at Lehman Brothers, said: "It did get busy on Thursday, and the phones never stopped because every man andhis dog was phoning up and asking what's going on.
"I don't think it's got to the stage where people will cancel their holidays, as most banks make sure they have the cover to cope - although some people might want to stay in the office, as they see any volatility as a money-making opportunity."
Michael Jacobs, an independent proprietary trader who trades millions of euros a day in short-term interest rate futures for his company Met Traders, said Thursday was one of the busiest days of the year.
"It went crazy. I thinka lot of people are liquidating their positions, but itis a market in which youcan make a lot of money. "I'm on holiday next week and I'm going to take it. I think sometimes you just have to do that or you will never take a break."
Copyright The Financial Times Limited 2007 |
