Black Phoenix glitch highlights PB dangers

Rabobank's decision to pull out of FX PB highlights risky nature of the business

Dark storm clouds and lightning broken by the sun shining down onto a calm sea

A rogue algorithm shook currency markets in November last year, when Black Phoenix, a Chicago-based high-frequency trading shop, suffered a technology glitch and accumulated large positions on an electronic trading platform within seconds, FX Week has learnt.

At the time, one of Black Phoenix's algos suffered a bug and ran up a large position on trading platform Integral, using up allocated credit lines before a kill switch was manually engaged. Black Phoenix's prime broker (PB), Netherlands

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact customer services - www.fx-markets.com/static/contact-us, or view our subscription options here: https://subscriptions.fx-markets.com/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a FX Markets account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: