What caused gaps in broker feed??? | Forex Factory

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What caused gaps in broker feed???

  • #1
  • First Post: Oct 24, 2006 10:36am Oct 24, 2006 10:36am
What was that about? Is it just my platform, or did everyone experience this?

About 45 minutes ago, or 14:45 GMT, I saw gapping on all the major curriencies, some over 20 pips (edit - USD/JPY was 30 pips). This is the first time I've seen a significant intraday gap and was just wondering if this happens from time to time for no particular reason.

I can't find any news that would explain it and the volatility doesn't seem to be particularly strong.
  • #2
  • Oct 24, 2006 10:41am Oct 24, 2006 10:41am
I don't see it on my platform. Anyway, what platform are you using?
"Even the word impossible says that I M possible"
  • #3
  • Oct 24, 2006 10:44am Oct 24, 2006 10:44am
Interbank FX.
  • #4
  • Oct 24, 2006 10:45am Oct 24, 2006 10:45am
Me too. IBFX. Gaps all over the place. USD weakness. Took out my stoploss. For what???
Quoting Hagbard Celine
Interbank FX.
  • #5
  • Oct 24, 2006 10:52am Oct 24, 2006 10:52am
I was long on the $ when I got stop too.
not exactly sure but Richmond Fed Index number was lower than expected. I noticed the $ slowing dropping after that news then suddenly.....BAM
  • #6
  • Oct 24, 2006 10:55am Oct 24, 2006 10:55am
<TABLE cellSpacing=0 cellPadding=4 width="100%" border=0><TBODY><TR><TD colSpan=2 height=6><SPACER height="6"></SPACER></TD></TR><TR><TD width=1><SPACER width="1"></SPACER></TD><TD vAlign=top><?xml:namespace prefix = rte ns = "urn:rte-search" /><rte:headline>Trade surplus widens in August</rte:headline>

October 24, 2006 16:42<rte:body> The trade surplus widened by over 5% to €2.873 billion in August from July, the latest figures from the Central Statisitcs Office show today.

Exports increased month-on-month in August by 6% to €8.080 billion and imports advanced also by 6% to €5.207 billion.

The CSO says that a comparison of the January-July figures with the same time last year shows that imports of petroleum and related products jumped by 24% to €2.175 billion

</rte:body></TD></TR></TBODY></TABLE>


Imports from Britain rose by 5% in the same time, from China by 23%, from Singapore by 103% and from Norway by 45%. Imports from the US were down 16% and from Japan by 18%.
  • #7
  • Oct 24, 2006 10:57am Oct 24, 2006 10:57am
Whoops, sorry that's not it........that's Italy
  • #8
  • Oct 24, 2006 10:59am Oct 24, 2006 10:59am
Quoting ePIPhany
I was long on the $ when I got stop too.
not exactly sure but Richmond Fed Index number was lower than expected. I noticed the $ slowing dropping after that news then suddenly.....BAM
Gain said something about swiss bank watching chf weakness. Maybe this caused a usd weakness in usd/chf which brought down the others... Don't know. Wasn't in any trades, so got lucky.
  • #9
  • Oct 24, 2006 11:06am Oct 24, 2006 11:06am
It was a combination of the weak Fed index (lackers region), the options cut, and the dow jones headline about central bank price checking.
  • #10
  • Oct 24, 2006 11:07am Oct 24, 2006 11:07am
Interbankfx has problems with their live servers.
Causing off-quotes, disconnect, gaps, not paying swap etc.

I thought problems were going to be history after the server upgrade.
It seems they still got lots of work to do.
  • #11
  • Oct 24, 2006 11:10am Oct 24, 2006 11:10am
Meta trader and my spread betting co. graphs are also showing the same gaps. Something definately spooked the market.
  • #12
  • Oct 24, 2006 11:13am Oct 24, 2006 11:13am
So were these gaps seen only on IBFX?

Traders with other brokers please respond.

Quoting humax
Interbankfx has problems with their live servers.
Causing off-quotes, disconnect, gaps, not paying swap etc.

I thought problems were going to be history after the server upgrade.
It seems they still got lots of work to do.
  • #13
  • Oct 24, 2006 11:15am Oct 24, 2006 11:15am
Quoting Horace Kent
So were these gaps seen only on IBFX?

Traders with other brokers please respond.
Nope Horace it was everywhere.
  • #14
  • Oct 24, 2006 11:18am Oct 24, 2006 11:18am
I think fears over the end of the carry trade could be the causal factor...more to follow in a moment.
"Always bet on black"
  • #15
  • Oct 24, 2006 11:22am Oct 24, 2006 11:22am
I demo IBFX and live trade Oanda...no gaps on Oanda, however the market did move very very very fast.
  • #16
  • Oct 24, 2006 11:29am Oct 24, 2006 11:29am
The SNB came out pro CHF today:

"Fundamental factors still speak for the franc,",
"These include low inflation by international comparison and the increasing current account surpluses and improving public finances."

"We monitor the development of the franc exchange rate closely, because a weaker franc makes our imports more expensive,"

...so they could do with a stronger currency, and is built in to their forecasts.

From Japan on the yen:

"I see no reason for a further deterioration in the yen given the strength in the Japanese economy," Hiroshi Watanabe, Japan's vice minister for international affairs

Finance Minister Koji Omi: `It's important that foreign exchange rates move in a stable manner, reflecting fundamentals of economies,'' ``We will keep closely monitoring currency moves and take appropriate actions if needed.''
The comments are from BB and Reuters. They fit with the idea that the carry trade fell out of bed today, from the perspective of the funding currencies...(we have seen significant JPY and CHF strength against both USD and EUR today).

(On my thread in the journals section of FF, called Abob's Fundies thread, I explain why I think JPY is severly undervalued and due a correction)

My working hypothesis when trading is that high yield trades with attractive accretive properties are also prone to sharp sell-offs, hence getting around the idea that they offer a free-lunch to the investing public.
"Always bet on black"
  • #17
  • Oct 24, 2006 1:52pm Oct 24, 2006 1:52pm
Thanks llambert3, makes me feel less paranoid now.
Quoting llambert3
Nope Horace it was everywhere.
  • #18
  • Oct 24, 2006 3:27pm Oct 24, 2006 3:27pm
Quoting abobtrader
From Japan on the yen:

"I see no reason for a further deterioration in the yen given the strength in the Japanese economy," Hiroshi Watanabe, Japan's vice minister for international affairs

Finance Minister Koji Omi: `It's important that foreign exchange rates move in a stable manner, reflecting fundamentals of economies,'' ``We will keep closely monitoring currency moves and take appropriate actions if needed.''
The comments are from BB and Reuters. They fit with the idea that the carry trade fell out of bed today, from the perspective of the funding currencies...(we have seen significant JPY and CHF strength against both USD and EUR today).

(On my thread in the journals section of FF, called Abob's Fundies thread, I explain why I think JPY is severly undervalued and due a correction)

My working hypothesis when trading is that high yield trades with attractive accretive properties are also prone to sharp sell-offs, hence getting around the idea that they offer a free-lunch to the investing public.
I hear you Bob. With $12 trillion in yen based carry trades, something has to give eventually. My question is what do you think the catalyst will be? The 1000 pip drop following the G7 meeting earlier this year just seemed to entice more carry activity.

My understanding is that the vast majority of the yen carry trade is unleveraged. With a ~4% yield differential between JGBs and treasuries, wouldn't a >4% appreciation in the yen be necessary to give some of the holders reason to consider dumping positions? 4% off of a 118 handle would put us in the neighborhood of 114.50. Many of the positions were put on at significantly lower levels then that. What are your thoughts on how we can get down there to even start the unwinding?
  • #19
  • Last Post: Oct 29, 2006 4:40am Oct 29, 2006 4:40am
Yes, i note that from two weeks ago , there many times , there many gaps in broker feed, if you seed other broker and aother source for the price you will find the price is changed, while it fixed in Interbankfx??????
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