The subject of liquidity is very much to the fore in foreign exchange markets again following what has been termed a “flash crash’ in Cable in early Asian trading.
- Flash Crash of the Pound Baffles Traders With Algorithms Being Blamed – Bloomberg
- Pound ‘Flash Crash’ Sees Sterling Plunge Six Percent Within Minutes – But Was It Due to a ‘Fat Finger’ Error? – Telegraph
- Cable Low in Dispute as Confusion Reigns – Profit & Loss
- Sterling Recoups Some Losses After 10 Percent Plunge – Reuters
- ‘Flash Crash’ for Pound to USD 1.14 is Surrounded in Mystery – Sky News
The dramatic collapse in the pound overnight is being scrutinised by the Bank of England amid suggestions that a “fat finger” error or computer-generated trade was behind the slide in sterling to a new 31-year low.
This morning’s flash crash in Cable in which it dropped 9.5 percent in seconds and the low of which is still disputed raise some interesting questions for the creators of the FX Code of Conduct.
Today’s sudden drop in the British pound serves as the latest warning that computers can be great to increase speed, but they’re dumb.
The pound’s sudden plunge Friday is fueling concern that trading has become less stable in an ever more complex market.
An HSBC Holdings executive and a former employee have been barred from the banking industry by the Federal Reserve as they face US criminal charges that they committed fraud in conducting foreign-exchange trades.
Sterling will plumb new multi-decade lows in the coming months as the battered currency extends its slide on concerns divorce proceedings with the European Union could be difficult and leave Britain outside Europe’s single market, a Reuters poll found.
Chinese currency hits weakest level against dollar since January after reserves fall by more than forecast in September.
The Japanese currency has fallen three percent in the past eight trading days.
Interest in hard currency outpaces local currency, a possible signal money is chasing yields rather than economic growth.
The IMF urged Asian economies to ensure their currency rates move flexibly.
Currency investors will need to transform the way they do business as global regulators expand their focus from banks, according to Aite Group.
The ten European Union countries pursuing a financial transaction tax meet in Luxembourg on Monday, trying to break a stalemate on the levy first proposed five years ago.
US futures watchdog the Commodity Futures Trading Commission may be about to water down its controversial plan to clamp down on electronic trading, a senior US trading expert has claimed.
The CFPB, the government agency overseeing consumer protection in the financial sector, has not included bitcoin and other virtual currencies and related products from its new prepaid regulatory requirements.
Ion Investment Group is to buy cloud-based treasury and risk management software solution provider Reval, the terms of which were not disclosed.
FX volumes were a notable strong suit at SGX in December, growing by double digits MoM.
Saudi Arabia is one of the worst performing markets globally but concerns about currency devaluation are “misplaced”, a report concluded.
The Canadian dollar weakened against its US counterpart as the greenback made broad-based gains, but losses for the loonie were restrained as oil rose.
Brazil’s real dropped as emerging-market currencies weakened after Federal Reserve officials signaled the US economy is ready for an interest-rate increase.
Latin American currencies and stocks mostly fell on Thursday as traders bet a closely watched US employment report due on Friday will strengthen the case for an interest rate increase this year.