US banks prepare for Brexit-style tumult following election
New York — US banks, including Morgan Stanley, JPMorgan Chase & Company and Goldman Sachs Group, are bracing for potential tumult on financial markets in the wake of Tuesday’s US election. Bank preparations ahead of the election reflect their experience following Britain’s shock vote to leave the EU in June, when the S&P 500 fell 3.6% the day after the poll. Morgan Stanley told staff to consider using stop-loss orders, an automated trading mechanism that sells an investor’s position as soon as a stock hits a preset level, if the election result causes trading volumes and volatility to spike. The bank also told advisers in its wealth management unit to prepare for election-related conversations with clients and pointed them to relevant pieces of research, according to a November 7 memo reviewed by Reuters.
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