BIS finds sterling crash was due to 'confluence of factors'

Last October's crash down to illiquid conditions, less experienced traders and loss of public data

BIS said there was little, if any, hard data to substantiate market abuse claims

The sterling flash crash on October 7 last year was due to a confluence of factors that led to an exaggeration of the move lower in the currency, including less experienced traders deployed outside the core time zone for the currency and the loss of data from public venues, according to a report from the Bank for International Settlements (BIS).

The study examined data from Thomson Reuters Matching and the CME futures exchange – drawing on market depth and anonymised transaction-level data – as