Price Glitch On EBS Raises Debate Over Automation
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NEW YORK--FX traders using the Electronic Broking Service (EBS) experienced a chaotic day on June 25, after a price glitch led to "20 minutes of mass panic", according to one participant in London. The problem was apparently due to human error--stemming from an off-market price in dollar/yen. However, the event has raised concerns about the widespread use of electronic matching in the FX industry.
The problem was compounded by the fact that during the previous week, the Federal Reserve Bank of
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