So while you might think you are investing in equities or fixed income in your global portfolio, you are also passively investing in foreign exchange. From early 2013, concerns were increasingly raised about the integrity of FX benchmarks, particularly around the potential for market misconduct in the trading around the time of benchmark fixings.
The flash events we have seen in the Treasury market so far have occurred early enough in the day to allow time for prices to recover before market close, and they have not been accompanied by any participant’s failure to perform, let alone a major participant, platform, or exchange.