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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 The orders would be placed and withdrawn in rapid succession using a customised computer programme, they allege", which sounds a lot like high-frequency trading.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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UK Citizen in Jail for Causing "Flash-Crash", or Just High-Frequency Trading?
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(Score: 2, Flamebait) by Dunbal on Sunday May 24 2015, @04:32PM
IT shouldn't be illegal. No spoofing in the world can force you to buy stock. If you're dumb enough to chase the price then you deserve what you get.
(Score: 3, Interesting) by kurenai.tsubasa on Sunday May 24 2015, @07:29PM
Have to agree here.
I know it would be a very bad thing short-term, but I'd like to suggest that when “flash crashes” happen that it should be illegal to hit the rewind button. Maybe long term if trillions of dollars of wealth could go up in smoke because of some algorithm somewhere, maybe, just maybe, folks might learn that gambling is a bad thing….
Just like I'd still rather be standing in line at a soup kitchen as long as the guy next to me was one of the assholes who turned the economy on its head in 2008.
I don't know. I can dream.
Capitalism? Invisible hand? Sure, there's a lot to that. Except the inevitable forces of power rear their ugly heads when the invisible hand is about to bitch slap a large swath of greedy, short-sighted, dimwitted investors who are supposed to be our “betters.”
(Score: 2, Interesting) by nitehawk214 on Sunday May 24 2015, @09:37PM
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.
"Don't you ever miss the days when you used to be nostalgic?" -Loiosh