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UK Citizen in Jail for Causing "Flash-Crash", or Just High-Frequency Trading?

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

Whoever writes:

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 The orders would be placed and withdrawn in rapid succession using a customised computer programme, they allege", which sounds a lot like high-frequency trading.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

 
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  • (Score: 2, Interesting) by nitehawk214 on Sunday May 24 2015, @09:37PM

    by nitehawk214 (1304) on Sunday May 24 2015, @09:37PM (#187360)

    I would agree... if they put some kind of transaction fee on placing the spoof trades. Financial institutions get to rollback trades if they were placed in error too.

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