Citi role in pound crash probed

UK-Japan News January 2017

The Japanese trading operations of Citigroup Inc. are being investigated by the Bank of England for its role in October’s “flash crash” in sterling, the Financial Times reported on 6 December.

The investigation is focusing on multiple sell orders that came from Citi’s Tokyo desk. Although not believed to have started the crash, they nonetheless played a key role in sending sterling to its lowest value in 31 years. A panicky trader and an electronic tool known as an Aggregator are possible reasons for the orders.

The incident saw the value of the pound fall from $1.26 to $1.14, with the currency sliding 9% in about 40 seconds.