Sterling flash crash leads to market price confusion

Banks set their own sterling/US dollar low 4% higher than some traded rates

pound-flash-crash-chart-web
Forex dealers agreed on a market low that conflicted with Thomson Reuters Matching

Following the dramatic flash crash in the sterling/US dollar rate in the early hours of October 7, disagreements about the rate's official low point led foreign exchange dealers to agree their own level, which was more than 4% higher than some trades seen on the day.

Risk.net understands a group of banks affected by the move, which saw the rate crash from 1.26 to as low as 1.13 within the space of 15 minutes, looked to collectively set the market low at 1.18. This meant buy and stop-loss orders

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: