FCA Looks at Algos as Citigroup Pound Flash Crash Probe Heats Up
- Citigroup said to discuss Oct. 7 drop with U.K.’s FCA, PRA
- Pound slid 9% to 31-year $1.18 low during Tokyo trading hours
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The head of the U.K. Financial Conduct Authority said his agency will look at how firms use algorithms in currency trading as a probe into the pound’s October flash crash intensifies, with regulators summoning Citigroup Inc. to discuss its possible role in the incident, according to people with knowledge of the situation.
The watchdog is conducting a general review of the use of algorithmically-driven trading programs, looking at whether firms have proper safety measures in place to control them, FCA Chief Executive Officer Andrew Bailey told Bloomberg in an interview Friday.