Currency manager calls for Swiss franc liquidity inquest
The collapse of foreign exchange liquidity during and after the huge Swiss franc move on January 15 caught market participants by surprise. Some are calling for an official enquiry
On January 15, currency markets experienced one of their largest intra-day moves in decades. Following the Swiss National Bank's surprise decision to abandon its currency floor, the Swiss franc soared 40% against the euro and 25% against the dollar in a matter of 30 minutes, from 9:30am UK time, before giving back most of its gains.
When the dust settled, market participants were able to assess the damage: three major foreign exchange dealers – Barclays, Citi and Deutsche Bank – were sitting on
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