Via the the Financial Times (gated, but can be read with a free registration) comes this: "Simon Potter, executive vice-president of the Federal Reserve Bank of New York, warned in a speech on Monday that the unintended consequences of regulatory and market changes could mean that "that sharp intraday price moves become more common" in the future."
There is a lot more at the FT, but in brief:
- Warned that last autumn's "flash crash" in US Treasuries could happen again due to the changing nature of the US government debt market
- Urged banks, investors and exchanges to adopt a revised set of guidelines in response to the turmoil
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I posted earlier on warnings on liquidity
