London — Flash-crashes are becoming a fact of life in late-night currency trading, and while regulators are poring over what lies beneath them, bankers say the changing structure of the industry means further slip-ups are inevitable. Over the past few years, the so-called “witching hour” at the start of Asian trading has brought short, brutal price swings hitting the New Zealand dollar, the rand, sterling, the yen, and on a milder level, the Swiss franc. That growing list is drawing heavier attention from policy makers around the world. Australia’s central bank noted that the biggest recent glitch, which hit the yen on the first trading day of this year, left a mark on its own currency, briefly sending the Aussie dollar to a 10-year low against the US dollar. Sterling’s sudden 10% slump over just 40 seconds in October 2016, meanwhile, prompted close examination from the Bank of England. The problem is that the exchange rates struck in these incidents are not scrubbed from trading sy...

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