Here's a piece from Reuters on liquidity considerations as we head into June 23
It's a good background read on structural developments in markets:
- ... prices, especially exchange rates, suddenly taking off in one direction or the other ... Machine-led algorithms tend to jump on the bandwagon when they detect signs that assets might break out of ranges
- Post-2008 decline of proprietary dealing means there are fewer humans to stand in their way Banks have scaled back risk limits, partly due to post-crisis regulation
- Kill switches on banks' electronic trading platforms are triggered far more quickly when there's too much one-way traffic, which can lead to "air pockets", where prices lurch around a lot
There was a price here a second ago!
More at the article here