Equilon FXThe mechanism.
In the real world.
Three documented episodes that connect policy, liquidity and the way markets function. Read the record, follow the mechanism and keep the limits of hindsight in view.
When the policy rule
changed.
The end of the EUR/CHF minimum rate is a case in distinguishing a policy commitment, a quotation convention and an executable price.
Read the caseOne sharp move.
Several mechanisms.
The sterling flash event shows why the sequence, trading conditions and mechanism matter more than finding a single convenient cause.
Read the caseWhen time to pay
became the problem.
A study in collateral, forced selling and why an asset purchase for financial stability is not the same statement as a change in the policy-rate outlook.
Read the caseHow to read a case.
The event dates and institutional actions below come from linked original documents. The explanatory framework is Equilon’s interpretation. Worked arithmetic is explicitly hypothetical; it does not recreate a market’s full price path or a participant’s trading outcome.
Sources, examples and corrections ↗