MAKING sense of the foreign exchange market is Derek Mumford’s bread and butter, but he couldn’t explain this. “It was out of proportion to the supposed trigger,” said Mumford, a director at Rochford Capital Pty in Sydney. So-called algorithmic transactions in the foreignexchange market have more than tripled over the last three years, accounting for almost US$200bil of daily turnover, according to Aite Group, a consultant in Boston. For a related story on algorithmic currency traders, click here. It’s too early to come to a conclusion about the role of algorithmic traders in Friday’s rout, said Ralph Achkar, capital markets product director at Colt, which provides trading infrastructure to electronic dealers.

Source: The Star October 07, 2016 23:48 UTC