Fintech Firm Could Help Unravel Mysteries Behind Flash Crashes
- Bank is an investor in currency market fintech firm Cobalt DL
- U.K. is still investigating the pound’s October flash
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Sudden jolts in the currency market may be becoming more frequent, with at least three flash crashes over the course of 14 months. But there is some hope in finding out their causes more quickly.
Citigroup Inc. is investing in a technology that, if widely adopted, could help get to the bottom of sudden market spasms. The world’s largest currency trader is backing Cobalt DL, which aims to use a distributed ledger to create a single trade record that would replace existing fragmented systems.