Pound Flash Crash: Keeping Currency Markets Safe

The video discusses the nature of market volatility, particularly flash crashes, and their impact on global markets. It explores liquidity concerns in the FX market, noting changes over the past decade with diverse players affecting trading and pricing. The discussion also covers potential market structure fixes, such as circuit breakers, and the challenges of implementing them in a global, over-the-counter market like FX.

What factors contribute to the increased frequency of market crashes today compared to the past?

How has the liquidity profile of the FX market changed over the last decade?

What challenges do investors face in executing large trades in the current market structure?

Discuss the potential impact of implementing circuit breakers in the FX market.

What are the implications of having different circuit breaker rules across exchanges?