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High speed traders may have fanned volatility after SNB move

FX market liquidity warrants continued attention, say central bankers

The Swiss franc surged more than 40 per cent within 20 minutes of the SNB's announcement that it would drop its euro cap. It retraced about half of that spike over the following 20 minutes, where it began to stabilise.


HIGH frequency traders may have at first exacerbated currency swings after the Swiss National Bank's surprise decision to drop its euro cap, before helping to calm the market faster than would otherwise have been the case.

Central bankers discussed the impact of such traders...

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