Sterling flash crash leads to market price confusion
Banks set their own sterling/US dollar low 4% higher than some traded rates
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
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