GBP Flash Crash – Actually a flash in the pan!

“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.” – Jonathan Brewer, Managing Partner, ISPrime

By Raj Sitlani, Managing Partner, ISPrime

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.

fbf34ed983ed3d962adf8987ad981012d127ba0357d9a901d4pimgpsh_fullsize_distr
Jonathan Brewer, Managing Partner, ISPrime

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.”

Featured photograph: Raj Sitlani, Managing Partner, ISPrime

Read this next

Retail FX

Spotware rolls out Manager’s API for cTrader brokers

Spotware Systems, a technology provider for the electronic trading industry, has released its new Manager’s API for Brokers, providing powerful tools for server-server integration.

Metaverse Gaming NFT

Dubai Museum taps Binance to jump onto NFT bandwagon

Dubai’s Museum of the Future, the $136 million UAE government-sponsored museum that opened a few weeks ago, is joining forces with Binance NFT to roll out a range of digital products on blockchain.

Digital Assets

Ripple and Lithuanian FINCI partner for XRP-based payments

Ripple is looking to expand its presence in Europe, forming a new partnership with Lithuanian electronic money institution FINCI.

Digital Assets

Crypto.com enables Shopify merchants to accept crypto payments

Crypto.com has integrated with Canadian e-commerce giant Shopify so global merchants can accept crypto payments and save on processing fees through cash-final settlements.

Institutional FX

FX volume drops 13pct at CLS Group in April 2022

FX settlement specialist CLS Group today reported that the executed volumes of currency trading on its platforms were notably down in April.

Crypto Insider, Opinion

Regulation: The Gold-Standard for Crypto-Assets

When the US supervisory authority SEC allowed an investment product referencing Bitcoin futures to be traded for the first time last October, this was widely perceived as a signal that cryptocurrencies had finally become established as an asset class.

Executive Moves

Solid hires FX industry veteran Darren Barker for multi-bank ECN’s business development

His curriculum vitae includes former roles at Cantor Fitzgerald, Sucden Financial, R.J. O’Brien, Jefferies, Natixis, Unicredit, J.P. Morgan, Raiffeisen, RBS International, UBS, Deutsche Bank, and Citi. 

Inside View

Mihails Safro, xpate CEO: Tips sellers need to know to overcome compliance obstacles

The unprecedented growth of e-commerce changed shopping dramatically last year. Many sellers suddenly faced a rapidly growing number of customers who had to stay home during the lockdown. When some clients adopted Netflix and Spotify as part of a daily routine, others ventured into online business. Robinhood alone saw a whopping 6 million rise in user numbers in 2 months. 

Institutional FX

BMLL delivers Level 3 data to Kepler Cheuvreux for order book analytics and algo performance

The solution covers more than 6.5 years of harmonised historical data from 65 venues and combines it with easy to use APIs and analytics libraries in a secure cloud environment. 

<