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.
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.
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.