Are stock markets becoming more volatile

We no longer check to see whether Telegraph. To see our content at its best we recommend upgrading if you wish to continue using IE or using another browser such as Firefox, Safari or Google Chrome.

Stock markets are only going to get more volatile as the world becomes more interconnected and technology makes it possible for large volumes of shares and other financial assets to be traded in seconds, regulators have warned. Modern technology and mathematical formulas mean dealers can execute split-second trades at higher volumes than ever before. But the downside to this is that when everyone uses similar algorithms, it results in a market with only buyers or only sellers, causing prices to swing violently, according to the Bank of England.

This means that episodes such as the chaos that followed 'Black Monday' in August - when hundreds of billions of pounds were wiped off global markets after China devalued its currency - could become a regular occurrence. The Bank's Financial Policy Committee, which is probing the matter, has found that since the financial crisis stock markets have become much more sensitive and prone to extreme swings.

It warned that regular episodes of extreme market fluctuation, as well as more prolonged periods where prices fall and liquidity dries up, could " have more widespread and persistent effects " on the economy and force banks to curtail lending.

The committee, headed by Bank of England governor Mark Carney, said part of the problem was also down to the changing role of investment banks, which have historically acted as shock absorbers when turmoil strikes. These banks can no longer be relied on to act as a stabilising influence on markets - as was the case before the financial crisis - because tighter rules on risk-taking means they're not allowed to hold large inventories of stocks, bonds and derivatives, which had previously helped to keep prices stable, the FPC said.

The Fortune Global has been released — the annual ranking of the largest companies in the world by revenues. Here is a list of the 20 biggest corporate money-makers.

Is Today's Market More Volatile Than in the Past? -- The Motley Fool

The Big Short, the film adaptation of Michael Lewis' book of the same name about the causes of the financial crisis, opens in UK cinemas this weekend. How will the story stack up against the greatest films about business?

Some fledgling firms have reached valuations in the tens of billions.

These are the 20 priciest of them all. How many of them do you know? From flu remedies to Harry Potter-inspired beverages, we highlight the weird and the wonderful brews and infusions. From 'scary cult movies from the s' to 'coming-of-age animal tales', Netflix has every niche covered. Forbes's annual index assess countries by a range of factors from taxes and technology to red tape and innovation.

These are the top 20 countries for doing business.

Predictions saw a huge shift this week. We explain why - and what it means for mortgages and savings. Accessibility links Skip to article Skip to navigation. Wednesday 21 June The biggest companies in the world in The Big Short hits UK cinemas: These are the most valuable start-ups in the world.

Starbucks' secret menu - the drinks you didn't know you can ask for. The 20 best countries in the world to do business.

What are the super-rich planning for Valentine's Day? First rate rise in 'August ' - latest market prediction. The world's 10 most expensive cities Discover the priciest cities around the globe for luxury property.

The cheapest places to buy an Isa. Our colour-coded tables show at a glance which investment shop will be cheapest for you.

Access Denied

HOME Finance Financial Crisis Debt Crisis Live Markets Banks and Finance City Diary. Economics Transport Media and Telecoms Energy Retail News.

Personal Finance Your Business Investing Savings Student Finance Jobs Job Search. Companies China business Money Deals Money Transfers Comment Alex Find an IFA.

Contact us Privacy and Cookies Advertising Fantasy Football Tickets Announcements Reader Prints. Follow Us Apps Epaper Expat Promotions Subscriber Syndication.