Citi is being investigated for its role in the pound's 'flash crash'
The report claims that while Citi did not start the crash, its Japanese trading operation made things worse by placing a large number of sell orders after the initial fall began, citing people with knowledge of the investigation.
The problem reportedly stemmed from one trader. The paper quotes an unnamed source as saying the trader in question "panicked" when the pound started to fall.
Sterling plunged to a three-decade low in Asian trade in early October, falling as much as 6% in just 2 minutes. While the motivation for the initial fall is not clear, traders said at the time that thin trading volumes meant the impact was outsized and created a downward spiral as the slump triggered more algorithms to sell. The FT says that the Citi trader in question fired off multiple sell orders, sending the pound spiralling.
Citi said in a statement given to the FT that it "managed the situation appropriately and our systems and controls functioned throughout the period."
- I spent $2,000 for 7 nights in a 179-square-foot room on one of the world's largest cruise ships. Take a look inside my cabin.
- One of the world's only 5-star airlines seems to be considering asking business-class passengers to bring their own cutlery
- Vodafone Idea FPO allotment – How to check allotment, GMP and more
- Indians can now get multiple entry Schengen visa with longer validity as EU eases norms
- Investing Guide: Building an aggressive portfolio with Special Situation Funds
- Markets climb in early trade on firm global trends; extend winning momentum to 3rd day running
- Impact of AI on Art and Creativity
- Reliance Industries quarterly profit stays flat; annual earnings hit record at ₹69,621 crore