Global markets will only get more volatile and put UK lending at risk, Bank of England warns

The stock market turmoil that followed Black Monday could become a common occurence, with serious implications for bank lending in the UK

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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.