Stories
Slash Boxes
Comments

SoylentNews is people

posted by n1 on Sunday May 24 2015, @02:11PM   Printer-friendly
from the justice-is-blind dept.

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 The orders would be placed and withdrawn in rapid succession using a customised computer programme, they allege", which sounds a lot like high-frequency trading.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?

 
This discussion has been archived. No new comments can be posted.
Display Options Threshold/Breakthrough Mark All as Read Mark All as Unread
The Fine Print: The following comments are owned by whoever posted them. We are not responsible for them in any way.
  • (Score: 0) by Anonymous Coward on Sunday May 24 2015, @05:39PM

    by Anonymous Coward on Sunday May 24 2015, @05:39PM (#187206)

    (Same poster)

    Actually what you may try to do is sell a few stocks from one account, buy pending stocks from another account and time it so that the pending stocks inflate the market at the time that the stocks you own sell. Then you cancel the pending stocks. Like I said the stock market attempts to time pending transactions bought and sold in such a way as to make this difficult (and those rules sometimes change to adapt to new exploits) but people try to find ways around it. For instance, IIRC, to resist this type of behavior you can't just decide that you want to buy a particular stock at the current price right now. You must place an order and by the time the stock price that you will buy the stocks for has been determined it's already well past the time that you are allowed to cancel the transaction (place order for $100, lag, cancellation time expires, lag, stock price that you pay is determined. You get whatever you can get for $100). Similar rules apply for selling stock.