However the DoJ's criminal complaint shows that Mr Sarao "took significant steps to protect his assets," which included setting up a new company, Nav Singh Milking Markets Limited, on the Caribbean island of Nevis, in late April 2010, shortly before the 'flash crash' took place. Nav Singh Milking Markets Ltd...rofl!
Don't get me wrong though - even though I think this is a typical media hype story with too much blame being put on one trader, I'm all for busting spoofers who actively manipulate the book.
Wow...he did that much damage from his home. A smart guy like that will still be trading when he gets out of prison via doing it through someone else.
He was one of the largest traders when measured by orders sent. The DOJ is giving away a lot of peoples' strategy on here.
Everybody should read this. Very informative. http://www.justice.gov/sites/defaul...ments/2015/04/21/sarao_criminal_complaint.pdf
Anyone that fucks with direction of stock markets will be gunned down. With so much accumulated national debt a bear market would probably trigger untold amount of easing. Ok, if they all do it, then we still end up with hyperinflation as buying power of all currencies would inevitably decline.
I heard on cnbc that at the time of the crash he was 60% of the market. So, he had a fair amount of capital to work with, although not much when you compare how little it takes to put on an ES to how much it would take to sell SPY.
Just read that entirely, thanks for posting. You gotta hand it to these guys for pulling this off, as criminal as it is. lol 22,000+ order modifications in hours. Absolute madness.