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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 The orders would be placed and withdrawn in rapid succession using a customised computer programme, they allege", which sounds a lot like high-frequency trading.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: 0) by Anonymous Coward on Sunday May 24 2015, @09:57PM

    by Anonymous Coward on Sunday May 24 2015, @09:57PM (#187367)

    Those who just say "somebody who isn't me has money, therefore they must be evil" has a ridiculously simple view of the world, IMHO.

    The problem WRT the stock market is that these people are gambling with other people's money. Your 401k? Their customers' money? That's what they're gambling with; if they win, they pocket all the profit, but if they lose, the gamblers don't lose a thing, but the people who's money they're using end up losing their entire retirement fund.