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

Market News

Rishi Sunak’s reign in real data

After several weeks of Rishi Sunak’s appointment as the new Prime Minister, it is obvious that he has claimed quite the public support.

Digital Assets

CrossTower acquires BEQUANT to help crypto industry reset and consolidate

“We are stabilizing an industry with incredible promise; regaining trust; and rebuilding the future of finance.”

Retail FX

Plum launches crypto offering for EU residents

Plum has added crypto investing to its range of investment options in France, Belgium, Spain, and Ireland. Residents there will be able to buy and sell cryptocurrencies in their app with just a few taps, via services provided by Bitpanda.

Retail FX

FX/CFD and Crypto broker Quantfury launches fractional trading of stocks, ETFs, commodities

“Quantfury is advancing its unmatched trading and investing conditions further by making it even more affordable to Quantfurians out there. Fractional trading mode opens up more trading opportunities to the Quantfury global audience of more than 400,000 Quantfurians.”

Industry News

SEC awards $20 million to whistleblower despite degree of culpability and reporting delay

The Securities and Exchange Commission has awarded a whistleblower with $20 million for providing new and critical information that led to the success of an enforcement action.

Institutional FX

Tradesmarter’s white label WOW TRADER integrates with TradingView

Tradesmarter’s white label trading platform solution WOW TRADER has integrated with TradingView, the high performance and mobile friendly charting tool.

Industry News

ASIC loses fee overcharging case against Commonwealth Bank of Australia

“ASIC pursued this case because we believed CBA did not have robust compliance systems to ensure customers were being correctly charged. ASIC will carefully consider the judgment and continue to work to ensure large financial institutions charge fees correctly and put their customers first.”

Digital Assets

Kraken pays $362K fine for onboarding Iranian users

Cryptocurrency exchange Kraken will pay $362,158 to settle its civil liability for apparent violations of US sanctions on countries like Iran, the Treasury Department’s Office of Foreign Assets Control said.

Digital Assets

Bankrupt lender BlockFi owes $275 million to FTX.US

Distressed crypto lender BlockFi has filed for Chapter 11 bankruptcy protection, nearly two weeks after halting withdrawals of customer deposits due to significant exposure to bankrupt exchange FTX.

<