jeudi 12 mars 2015
FXCM details institutional FX market dysfunction on Jan 15 around SNB action
Posted on 03:07 by nice news
FXCM has made a commercial statement, affirming that on January 15, 2015, the Swiss National Bank (SNB) caused a flash crash that lead to historic dysfunction never seen before in the FX markets when it announced that it was completely removing the 1.20 floor.
FXCM Inc (NYSE:FXCM) has disclosed detailed information regarding its systems and the broader FX market during the January 15th EUR/CHF Flash Crash.
FXCM has compiled data points which demonstrate the unprecedented and extreme dysfunction of the FX market on January 15th.
FXCM Timeline of Relevant Events on January 15 (Morning, Eastern Standard Time):
◾04:30 – Swiss National Bank announces the removal of the 1.2000 EUR/CHF floor.
◾04:30:47 – EUR/CHF drops below 1.2000 for the first time.
◾04:30:56 – 9 seconds later, the major international banks who provide liquidity to FXCM begin rapidly removing liquidity as quotes go as low as 1.1659.
◾04:30:57 – FXCM’s system circuit breakers deploy to halt new quotes and trading. These circuit breakers are designed to protect clients against erroneous quotes and off-market trades.
◾04:31:08 – 21 seconds following the drop below the 1.2000 floor, only 1 liquidity provider is quoting FXCM at 1.1094 (1000 pips from the floor price).
FXCM Inc (NYSE:FXCM) has disclosed detailed information regarding its systems and the broader FX market during the January 15th EUR/CHF Flash Crash.
FXCM has compiled data points which demonstrate the unprecedented and extreme dysfunction of the FX market on January 15th.
FXCM Timeline of Relevant Events on January 15 (Morning, Eastern Standard Time):
◾04:30 – Swiss National Bank announces the removal of the 1.2000 EUR/CHF floor.
◾04:30:47 – EUR/CHF drops below 1.2000 for the first time.
◾04:30:56 – 9 seconds later, the major international banks who provide liquidity to FXCM begin rapidly removing liquidity as quotes go as low as 1.1659.
◾04:30:57 – FXCM’s system circuit breakers deploy to halt new quotes and trading. These circuit breakers are designed to protect clients against erroneous quotes and off-market trades.
◾04:31:08 – 21 seconds following the drop below the 1.2000 floor, only 1 liquidity provider is quoting FXCM at 1.1094 (1000 pips from the floor price).
FXCM details institutional FX market dysfunction on Jan 15 around SNB action
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