Flash crash

The main story last week in the markets was the flash crash of British pound on Friday. The currency lost 6% in under two minutes at the start of the Asian trading session. There are multiple theories on what sparked the move with algorithmic trading and human error among others. The British pound touched 31-year lows and although it recovered some ground it will close the week under the 1.25 price level.

Sterling's trade-weighted index fell to its lowest since early 2009 on Monday, extending hefty losses seen last week, on deepening worry about an adverse impact on the British economy from its exit

Shocking yet not surprising

Six years ago today, the “flash crash” set off a historic day of trading in which more than a trillion dollars of value was lost in 36 minutes. You can’t burn money that fast.
On the trading floors of New York and Chicago, and on quieter desks from Greenwich to Boston, trading supervisors are reviewing surveillance reports and consulting real-time surveillance monitors as though their bonus checks depend on it—because they do. Here’s why.
Goldman Sachs Group Inc. will pay $7 million to resolve U.S. Securities and Exchange Commission charges stemming from a programming error that caused the stock options market to be flooded with erroneous orders, roiling traders and prices.
The British trader fighting extradition continues to deny involvement in the flash crash of 2010.
Navinder Sarao, the British trader accused of helping provoke the 2010 Wall Street "flash crash," is due to appear in a London court on Wednesday after failing to raise the bail needed to secure his release from custody, a court official said.
A trader has been arrested for allegedly holding an illegal role during the Wall Street flash crash five years ago. If convicted, he would face a long prison sentence.
Gold managed to keep up with its 2014 record yesterday and rose to its highest in three-weeks. There was a short period when it looked as though this wouldn’t be the case however, when the price fell by $30 in a minute to a low of $1,212.60. This price action prompted a 10-second ‘trading halt’.