The issue here is inefficient sub-markets which market regulators have a responsibility to investigate and fix. Its the equivalent of Air Crash Investigation when innocent people get caught up in either human error, mechanical error, negligence, procedural weakness, laziness, corruption and so on. Its a great program to watch because of the diverse sources of problems, the integrity of investigation, and the innocent being damaged or killed. Weaknesses are dealt with though over time.
Swiss Franc Slumps in Mini ‘Flash Crash’ as Japan Curse Strikes
The Swiss franc swooned almost 1 percent at the start of Asian trade Monday as thin liquidity caused by a Japan holiday led to a mini recurrence of the “flash crash” that roiled FX markets early last month. The Swissie slid from 1.0004 per dollar around 7 a.m. in Tokyo to as weak as 1.0096, the lowest since November, within a matter of minutes before almost as suddenly reversing the move to trade 0.2% stronger on the day. The round trip created a trading range for Monday of almost 110 pips, about double this year’s daily average of 56 pips. The move was a smaller cousin of the whiplash that saw the yen jump ... (full story)