Arab Today, arab today flash crash trader to appear in london court
Last Updated : GMT 18:08:22
Arab Today, arab today
Arab Today, arab today

'Flash Crash' trader to appear in London court

Arab Today, arab today

Arab Today, arab today 'Flash Crash' trader to appear in London court

US stocks plunged 600 points
London - AFP

A British trader accused of contributing to a US stock market crash and fraudulently making $40 million in high-frequency trading from his modest London home was due to appear in court on Wednesday.

Navinder Singh Sarao, 36, was arrested by British police on Tuesday on an extradition warrant issued by the US authorities, which  accuse him of an elaborate scheme using automated software on the futures market.

US justice officials allege that his trades contributed to the May 2010 "Flash Crash", when US stocks plunged 600 points in five minutes.

Over five years until April 2014, Sarao allegedly made $40 million (37 million euros) from his high-frequency trading on the Chicago Mercantile Exchange (CME).

His company, Nav Sarao Futures Ltd, is headquartered in a suburban house in Hounslow, west London, which is reportedly also his family's home.

The US Department of Justice accuses Sarao of placing orders for futures contracts -- agreements to buy or sell a specific product or financial instrument in the future -- before cancelling them abruptly.

The goal of the practice -- known as "spoofing" -- is to manipulate the market price, which the trader can then exploit by simultaneously executing other, real trades using automated trading software.
Sarao was trading on a leading futures market, the E-Mini Standard & Poor's 500 futures contracts, which is linked to the Standard & Poor's 500 index of leading shares.

He was allegedly highly active on the market in the period leading up to the "Flash Crash" on May 6, 2010, when the Dow Jones Industrial Average fell by about 600 points in a five-minute span after a big drop in the price of E-Minis.

The US authorities are requesting Sarao's extradition from Britain to face one charge of wire fraud, 10 counts of commodities fraud, 10 counts of commodities manipulation, and one count of "spoofing".

"Sarao's alleged manipulation earned him significant profits and contributed to a major drop in the US stock market on May 6, 2010, that came to be known as the 'Flash Crash'," the US Department of Justice said in a statement.

- 'Kiss my ass' -

Sarao was challenged on numerous occasions in 2009 and 2010 by US and European authorities over what the charge sheet said was his "suspicious activity".

In various responses, he acknowledged that he frequently cancelled large orders but denied he was using automated trading software, but was doing it all manually.

The Chicago exchange contacted him in March 2009, and again in 2010, about his activities before the market opened.

Responding to his commodity broker, who acted as an intermediary, Sarao said he had called the exchange "and told 'em to kiss my ass", the US documents show.

He was also challenged by the exchange about another incident where he placed and cancelled a large number of orders within seconds.

Sarao claimed that he "was just showing a friend of mine what occurs on the bid side of the market almost 24 hours a day, by the high frequency geeks", the documents show.

His trading activity was also challenged by Eurex, a German derivatives exchange, and Britain's Financial Conduct Authority, but each time he denied using automated software.

According to British media reports, Sarao still lives at home with his family in the semi-detached house in Hounslow.

His father, Nachhattar Singh Sarao, was quoted in The Times newspaper as saying that he knew nothing of the allegations.

"All this is news to me. What you're telling me is as much a surprise to me," he said.

Asked about the nature of his son's work, he said: "I don’t know about computers."

 

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today flash crash trader to appear in london court Arab Today, arab today flash crash trader to appear in london court

 



Arab Today, arab today
Arab Today, arab today Reveals his participation in "Fashion Star" TV show

GMT 12:49 2017 Wednesday ,01 March

Reveals his participation in "Fashion Star" TV show
Arab Today, arab today Tabarka beauty between sea, mountain

GMT 06:37 2017 Wednesday ,01 March

Tabarka beauty between sea, mountain
Arab Today, arab today Sheds light on major steps in 12-year career

GMT 06:07 2017 Monday ,27 February

Sheds light on major steps in 12-year career
Arab Today, arab today Russia, China veto UN resolution

GMT 07:27 2017 Wednesday ,01 March

Russia, China veto UN resolution
Arab Today, arab today NUMP's conference to discuss proplems

GMT 13:40 2017 Wednesday ,01 March

NUMP's conference to discuss proplems

GMT 13:19 2017 Wednesday ,01 March

Why King Salman’s Asia tour is so significant

GMT 09:24 2017 Wednesday ,01 March

Trump plans $54bn increase in US defence spending

GMT 07:23 2017 Wednesday ,01 March

China shuts down $7.3bn illegal forex operation

GMT 06:46 2017 Wednesday ,01 March

OECD: India needs more inclusive growth

GMT 06:39 2017 Wednesday ,01 March

US core capital goods orders fall

GMT 06:32 2017 Wednesday ,01 March

Mexico: US tariffs would kill NAFTA talks
View News in Arabic - Business: اقتصاد دولي
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Parliament considers solutions to overpopulation

GMT 20:27 2017 Monday ,27 February

Parliament considers solutions to overpopulation
Arab Today, arab today Lasers flesh out dino-bird profile

GMT 12:24 2017 Wednesday ,01 March

Lasers flesh out dino-bird profile
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Final Phantom VII signals end of an era

GMT 14:31 2017 Tuesday ,28 February

Final Phantom VII signals end of an era
Arab Today, arab today 'Constructive' Vauxhall talk with union

GMT 08:54 2017 Saturday ,25 February

'Constructive' Vauxhall talk with union
Arab Today, arab today Najla Badr will participate in “30 Days” drama

GMT 06:23 2017 Monday ,27 February

Najla Badr will participate in “30 Days” drama
Arab Today, arab today Humans spark most US wildfires

GMT 14:58 2017 Tuesday ,28 February

Humans spark most US wildfires

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years

GMT 11:44 2017 Saturday ,25 February

Penguins in the age of dinos

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"

GMT 07:54 2017 Wednesday ,01 March

Shanghai expands public smoking ban

GMT 00:47 2017 Monday ,27 February

17.4 million tourists visit UAE in 2016

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 06:27 2017 Wednesday ,01 March

GSMA: 5 billion mobile phone users in 2017

GMT 18:23 2017 Friday ,24 February

Fadi explains secrets of  Nancy Ajram's newlook
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday