London — There is little if any data to support suggestions that traders may have deliberately spurred October’s flash crash in sterling, a Bank for International Settlements report said on Friday, pointing instead to a range of structural factors. The report from the BIS Markets Committee steered clear of discussing the conduct of individual banks or traders in the 9% fall and recovery of the pound over a few minutes around the start of the Asian trading day on October 7. The Financial Times reported last month that regulators had been looking at the activity of a Japan-based trader at US bank Citi, the world’s single biggest currency trading institution, during the currency’s fall. Citi has said its trading operations functioned appropriately in a thin and illiquid market. "Based on the available evidence, this event (the flash crash) appears to have been the product of a confluence of factors," the committee, made up of representatives of the world’s major central banks, said in ...
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