Of course that is the worst case scenario according to the reuters article. But it was under discussion among the European finance ministers. And maybe is unlikely to happen. Any ideas on what may happen. My trading experience is a bit short to have dealt with such situations in the past. 1. Is it more likely to be peg ala EURCHF or more like pre bretton woods sort of capital control 2. Since there is no access(or limited access) to euros we could possibly say goodbye to trading EURUSD, Eurex bunds and stoxx50. 3. Is there a possible risk of a sudden extreme 10% move in EURUSD due to some massive decision by the EUR. 4. I honestly have no proper idea on how capital controls work and what limitations they cause. Can anybody who has experienced such phenomena chime in please? All I can really think of right now is to halt trading in Eurozone based instruments until clarity emerges. It is enough trouble to manage risk in functioning markets. It is another thing to worry about whether the market will be there next week in its current form or not. What do you guys think? Regards.
Sorry mate. Forgot to link the article. Here it is http://www.reuters.com/article/2012/06/11/us-eurozone-greece-capital-idUSBRE85A0ZB20120611