Pound’s Drop Prompts Worries About Currency Market Stability
- Crash was 3rd such drop in 14 months in $5-trillion market
- Bank trading reduced amid boom in algos and trading platforms
Foley: Clear That Sterling Is a 'Vulnerable Currency'
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The pound’s sudden plunge Friday is fueling concern that trading has become less stable in an ever more complex market.
Sterling’s 6.1 percent drop against the dollar came on the heels of at least three inexplicable currency tumbles in the past 14 months. Banks, the traditional backbone of the $5.1 trillion-a-day currency market, now have a smaller presence and many human traders have been replaced by computers.