Banks must keep up with high-speed traders – BoE’s Jackson
Risk has migrated to a part of the system where execution is measured in microseconds, official says
Banks’ risk management needs to keep pace with the extreme speed at which principal trading firms execute transactions, the Bank of England’s Rebecca Jackson has said.
In a speech on February 2, the BoE executive director said regulations introduced in the wake of the 2008 financial crisis had led to much market-making activity moving out of banks and into principal trading firms. These non-banks relied on banks for credit and settlement, and routed some of their orders through banks’
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