Robot Trades Inflamed Then Soothed Markets After Franc Shock
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High-frequency traders may have at first exacerbated currency swings after the Swiss National Bank’s surprise decision to drop its euro cap, before helping to calm the market faster than would otherwise have been the case.
Central bankers discussed the impact of such traders last month, according to minutes published Wednesday of the Global Meeting of Foreign Exchange Committees in Tokyo on March 23. The committees are composed of central bankers and representatives of the private sector, with Japan, the U.S., the euro area, and the U.K. among eight regions represented.