Central Banking

BoE paper scrutinises 2016 sterling flash crash

Paper makes detailed study of “flash episode”, concluding later price drops were abnormal

Sterling-market

A paper published by the Bank of England has laid out evidence on the October 2016 flash crash in the sterling/dollar currency pair, noting the latter stages of the crash were particularly unusual.

As well as offering detailed examination of the event, the staff working paper seeks to establish whether the dramatic price movements were in line with the volumes being traded. Although trades were mostly small in size, there was a very large number of them, occurring in a typically quiet and

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