UK trader arrested for May 2010 U.S. Stock market flash crash

Discussion in 'Wall St. News' started by just21, Apr 21, 2015.

  1. Does anyone have the full TradersAudio clip from that day? If I remember correctly, Goldman (among others) was extremely active on the bid.

    One guy didn't spoof the market out of 1,000 points lol. Who are these guys kidding?
     
    #251     Apr 26, 2015
  2. Ditch

    Ditch

    He did it hundreds times a day. With how many cars, a few 100? It's not like he quit for the day after he made 500 bucks, like some pantspissing ET-legend.
     
    Last edited: Apr 26, 2015
    #252     Apr 26, 2015
  3. Can't wait until his book comes out.

    In fact, Jack Schwager really needs to interview this kid
     
    #253     Apr 26, 2015
  4. Ditch

    Ditch

    Make that Marketsurfer, at least it will be funny. This should be written like a novel. Jack Schwager is as dry as crumbs.
     
    Last edited: Apr 26, 2015
    #254     Apr 26, 2015
  5. Ditch

    Ditch

    When is somebody going to sue these exchanges for negligence? They could have ended this stuff easily, instead they did zilch because their cronies were wallowing in it.
     
    #255     Apr 26, 2015
  6. The date of his explanation to "fca" was 2014. Flash crash was years before that. They are grasping at straws here.

    What pisses me off is that this kid put plenty of risk out there. Spoofing isn't risk-free. Nothing is.
     
    #256     Apr 26, 2015
  7. Maybe reality is like this: what is illegal becomes "legal" if you are part of the right club.

    Maybe CME takes part in deciding who can join that club and who cannot? That would explain why they do nothing to stop HFT and spoofing.

    Like everywhere: money rules the world.
     
    #257     Apr 26, 2015
  8. Ditch

    Ditch

    That's definitely not a maybe.
     
    #258     Apr 26, 2015
  9. I wrote"maybe" because in the US it is possible to make huge financial claims about anything, so even about the word "definitely". :)
     
    #259     Apr 26, 2015
  10. Ditch

    Ditch

    The CME already issued a statement that gets him off the hook for the collapse. There's a link to it in this thread.

    CME Statement Says Flash Crash Not Caused by Futures
    Traders Magazine Online News, April 23, 2015

    John D'Antona Jr.

    It wasn't our fault.

    That's the official word from the CME Group, parent operator of the exchange where Navinder Singh Sarao, the high-frequency trader who stands accused of causing all or part of the May 2010 flash crash, executed his trades. The company made the following statement as there is growing sentiment among market participants that the exchange did little or nothing to bring legal or other action against Sarao immediately following the market event of May 2010.

    "Nothing is more important to CME Group than the integrity of our marketplace. Following the Flash Crash on May 6, 2010, together with other regulators, we did a thorough analysis of all activity in our markets during the Flash Crash, and concluded - along with regulators - that the Flash Crash was not caused by the futures market. If new information has come to light, we look forward to reviewing it with the Commission. We fully support the CFTC's actions to prosecute those who attempt to engage in fraud or manipulation."

    Also, an perhaps most importantly, the exchange operator concluded its remarks by saying it is prohibited by law from releasing information about any individual's trading behavior," such as Sarao's.
    "So we are unable to comment further at this time," the press statement ended.

    CME operates options and futures exchanges as well as derivatives exchanges in Chicago, and New York City, as well as online trading platforms.
     
    Last edited: Apr 26, 2015
    #260     Apr 26, 2015