GBP Flash Crash – Actually a flash in the pan!
We have already seen much discussion on last week’s GBP move with no firm cause being identified as yet; fingers have variously been pointed at overzealous algos, fat fingers and Hollande’s hard Brexit stance, to name but a few.
In our opinion what is more important than speculation about the cause of the move is to look at the effect on clients, brokers and LPs caught up in the mêlée as well as to look at the differences in the market’s reaction than that which we saw on January 15th 2015.
We at IS Prime are pleased to confirm that despite the magnitude and velocity of the move, our systems remained stable throughout the event and liquidity remained robust. As a result, there were no clients put into auto-liquidation (something that we actively avoid, knowing full well the consequences) and no clients with negative balances.
There has been a lot of speculation about the low in GBPUSD on the day, with a trades on one primary market being recorded as low as 1.1491, but we can confirm that the lowest sell price that a client transacted with IS Prime on the day was at 1.19147. This was due to our unrivalled technology, with price filtration models and liquidity optimisation, performing faultlessly.
Over the course of the night our technology team, together with our 24-hour execution desk, were proactively engaging with clients and LPs to ensure that no one was left wanting for information and update. This is testament to our philosophy at IS Prime; that open and transparent conversations with clients, together with state of the art systems, will lead to great resilience in adverse times
Jonathan Brewer, Managing Partner at IS Prime commented: “As with all market events of this nature, rumours tend to circulate regarding potential losses made by major market counterparties. As part of our focus on transparency, I can confirm that this event had a negligible impact on our P&L and we were profitable for the week.”