Speed Traders, Banks Called Out in Report on Treasury Swing
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The Treasury market’s harrowing swing on Oct. 15, 2014, resulted in part from banks and high-frequency traders, U.S. authorities said in a report released Monday.
In a six-minute window that morning, banks essentially pulled out of the market, providing no, or very few, offers, the U.S. Treasury and other agencies said. At the same time, high-frequency trading firms exacerbated the situation by often being on both sides of the same trade, according to the report.