British Pound Flash Crash: What Happened?

The video discusses the liquidity of currency markets, focusing on the South African Rand and Sterling. It highlights the changes in market dynamics due to banking sector shifts and the challenges of maintaining liquidity. The video also examines the regulatory differences between FX and exchange markets, using the 2010 US flash crash as a reference. Finally, it explores the impact of political events, like Theresa May's remarks, on the pound's value, emphasizing the role of currency as an economic shock absorber.

What factors contribute to the liquidity of a currency in the market?

How does the relationship between the banking sector and market making affect liquidity?

In what ways can regulators respond to market crashes in the FX market?

What role does the pound play as a shock absorber for the UK economy?

What are the implications of a weaker pound on the UK economy?