Just noticed this one: UPDATE 2-CFTC says CME directed to beef up 'spoofing' enforcement (Updates with comments from CME's Terry Duffy, more comments from Massad, link to a related CFTC story) By Sarah N. Lynch May 14 (Reuters) - The top U.S. derivatives regulator said on Thursday that his agency has directed exchange market operator CME Group Inc to beef up its enforcement staff and develop plans to detect manipulative "spoofing" tactics. Commodity Futures Trading Commission Chairman Tim Massad discussed the agency's recommendations to CME in prepared testimony before the U.S. Senate Agriculture Committee, which oversees the regulator. CME should "develop strategies to identify instances of spoofing, and, as appropriate, pursue actions against perpetrators," he said, following a CFTC review of the market operator in November that uncovered deficiencies in its disciplinary program during the 2012-13 period. Massad's comments come nearly a month after London-based trader Navinder Singh Sarao was arrested and charged with market manipulation linked to the May 6, 2010 flash crash. Sarao was trading on CME's platform, and although officials there detected some questionable trading activity in 2009, his alleged manipulation continued through this year, according to U.S. authorities. On the day of the flash crash, criminal authorities said the CME had ask Sarao if he was placing orders in good faith. Massad told reporters on the sidelines of the hearing that CME has been "very responsive" to the CFTC review's findings. CME Executive Chairman Terry Duffy, who also testified before the same panel on Thursday, told Reuters that the findings in the CFTC's review were not related to its oversight of Sarao. "We've had strategies to detect market disruption since inception," Duffy said. "The CFTC has told us in the past...can you hire more investigators?...and we've been hiring more investigators." Some critics have questioned why regulators at the CME and the CFTC took so long to detect Sarao's allegedly manipulative trading. Ultimately, it was a whistleblower to led the CFTC to Sarao. Massad pleaded with lawmakers in a letter Thursday not to curtail the agency's powers to react quickly to market events. Duffy said the previous communications that CME's self-regulatory staff had with Sarao were not related to the flash crash in any way. "We were in touch with him on May 6, 2010," he said. Those communications referred to activities in 2008 and 2009 in which Sarao was putting in orders prior to the market opening, Duffy noted. "We sent him a letter of warning," he said. "That activity stopped... It had nothing to do with the flash crash." "It was just the damnedest timing," he added. (Reporting by Sarah N. Lynch; editing by Susan Heavey and Christian Plumb) http://www.reuters.com/article/2015/05/14/cftc-cme-group-spoofing-idUSL1N0Y51CB20150514
Now they are "develop strategies to identify instances of spoofing" . What a joke. Probably take another 10 yrs to implement. Funny how Nanex does this already.
http://www.bloomberg.com/news/artic...ind-lived-with-his-parents-and-couldn-t-drive More recent news on Nav and his plight. Until this article, I was under the impression that Nav was only an algo trader. That's NOT the case....he was a heckuva day trader. 6 figure profits some days.
The Jailed Flash Trader Who Became ‘The Hound of Hounslow’ Traders Magazine Online News, June 11, 2015 Suzi Ring and John Detrixhe and Liam Vaughan (Bloomberg Business) -- Navinder Singh Sarao will never rank among the most notorious inmates of HM Prison Wandsworth. William Joyce betrayed Britain to the Nazis. Ronnie Kray ruled the ganglands of the East End. Bruce Reynolds masterminded the Great Train Robbery. Today Nav Sarao sits in a 10-foot-by-six-foot cell at Wandsworth, considered one of the worst prisons in Britain, accused of an altogether different sort of crime: helping to wipe more than $1 trillion off financial markets five years ago. At “Wanno,” a forbidding Dickensian fortress south of the River Thames, time moves to the same monotonous rhythm: the jangle of guards’ keys at 6:30 a.m.; yard exercise at 8 a.m.; dinner at 4:30 p.m.; lockdown by 8 p.m. Until one morning in late April, virtually no one in the great investment houses of the City had ever heard of Sarao. But then Scotland Yard arrived in Hounslow, on the western fringes of London. What happened next stunned everyone. Sarao was arrested at his parents’ modest, suburban home that Tuesday and accused of helping to cause the so-called flash crash of 2010, when the U.S. stock market plunged in a matter of minutes. While prices recovered almost as quickly as they’d fallen, the episode staggered investors. No one could explain it. Here at last, authorities claimed, was an answer: a glorified day trader living with his mom and dad near Heathrow Airport. Prison Tracksuit This Tuesday, Sarao will return to court in his gray prison tracksuit and sit in the glass-fronted dock for an eighth time. The U.S. is seeking to extradite him on 22 counts ranging from wire fraud to market manipulation. Sarao, 36, denies all the charges, and many observers doubt he, or anyone else, caused the flash crash single-handedly. Instead, they point to an uncomfortable truth about 21st Century markets: computers, not people, largely drive prices moment to moment. “I’ve not done anything wrong apart from being good at my job,” Sarao exclaimed in court in May, the only time he has spoken publicly since his arrest. For all the question marks surrounding this case, the biggest of all has been Sarao himself. To Fleet Street, he is the “The Hound of Hounslow,” a tabloid caricature of City greed and excess. Yet in this post-Madoff era, when giant banks plead guilty to felonies that would put ordinary perps behind bars, Sarao defies nearly everything we’ve come to expect from our financial villains. There was no Alain Ducasse in London, no après ski in Gstaad. Interviews with people who knew or worked with Sarao paint a very different portrait and, in some ways, a stranger one. Many spoke on the condition they not be named to avoid being drawn into the scandal. A London lawyer for Sarao declined to comment. A spokesman for Wandsworth prison contested its description as one of the worst jails and said it had been praised for its performance. Pathologically Frugal http://www.tradersmagazine.com/news...T=tradersmagazine:e4546681:1175783a:&st=email
its all ok now folks the age of irresponsiblity is over says BOE governer http://www.bbc.co.uk/news/business-33087604 nothing to see, move along.
Poor analogy. The CME allowed unlmited cancelled orders, didn't charge for excess cancelled orders, and thus they effectively promoted spoofing. So Nav did what they allowed, faked-out a lot of other bots and traders, and made some money. Where's the theft ? Also, with rerspect to markets, there are many unscrupulous, unethical, and unprofessional actors in these markets.
Not sure where you got my quote from as I dont believe I said that. Please post a link of where I said that. I doesnt sound like something I would say. wherever you got that supermarket analogy I agree it is a poor one. This isnt a case of theft for starters.
It's in the link you had embedded. Some over-zeolous bureaucrat made that statement. They're really grasping for straws here.
I forgot to add this: To single Nav out amongst all of these other "characters"...now that's the REAL CRIME.
Yeah, this Mark Carney is just another bureaucrat trying to simplify the issues and pass blame on only some individuals and not any institutions.....natch.