Market Resilience Post-Brexit Masks Underlying Risks, BIS Says

  • Rally in stocks as bond yields plunged signals ‘dissonance’
  • Proliferation of electronic trading ‘has raised concerns’

Adding to the risk of sudden market moves is the widespread use of electronic trading platforms and algorithms whose complexity and “often opaque trading strategies has raised concerns about potential implications for market stability in times of stress,” the BIS said.

Photographer: Chris Ratcliffe/Bloomberg

The way financial markets recovered from turbulence in the aftermath of Britain voting to leave the European Union could be deceptive, the Bank for International Settlements warned.

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