Nainder Sarao sits in jail because he cannot raise the £5M bail that is required for his release. He has apparently made millions while living in his parents' basement, but doesn't have access to the money because his accounts have been frozen. What is claimed by US authorities is that "... Mr Sarao placed "spoof" trades in E-Mini S&P derivatives in a bid to push the market in his favour. The orders would be placed and withdrawn in rapid succession using a customised computer programme, they allege", which sounds a lot like high-frequency trading. Perhaps his real crime was to copy the techniques of wealthy high-speed traders?
(Score: 2) by Justin Case on Sunday May 24 2015, @04:19PM
Just to put your reply in context, would you be one of those who think the government should not grant corporations permission to exist?
Or, if you're OK with corporations, how do you think they should obtain the investment seed money to build up their business? For example a railroad: where should they get the millions of dollars to pay for track and rolling stock?
(Score: 1, Interesting) by Anonymous Coward on Sunday May 24 2015, @04:55PM
The primary and secondary stock markets are completely different things anymore. This is doubly so when dealing with public corporations. No body thinks they are buying shareholder voting rights (due to the shear expense of getting that much stock) or dissolution assets (as companies either live forever or bankrupt) anymore and dividends are the exception, not the rule. It is gambling, plain and simple except the major players make the rules.
(Score: 1) by nitehawk214 on Sunday May 24 2015, @09:43PM
HFT has nothing to do with companies raising money to buy capital. It is just a means to manipulate stock prices to help the buyer running the HFT system. I would expect day-to-day fluctuations in stock prices caused by this make no difference to companies in the long term. Unless, of course, it causes the stock to completely tank. Then the company will no longer be able to raise any money at all by issuing new stock.
In fact the stock market in general often has little to do with the actual value of the companies. I have never really understood this disconnect.
"Don't you ever miss the days when you used to be nostalgic?" -Loiosh
(Score: 0) by Anonymous Coward on Monday May 25 2015, @09:08AM
That doesn't relate to my reply, which is that there are all of these silly and arbitrary rules being placed, and all so the rich can get even more pieces of paper.