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

CME gets the message. fines some more

From Bloomberg, 01.05.2015 04:41:38


CME Group Inc. said it suspended two traders for placing manipulative trades, similar to the ones that got Navinder Singh Sarao into headlines around the world last week.

To read the entire article, go to http://bloom.bg/1HWtLrO
 
If regulators succeed in weeding out false bids and offers, nobody will post real bids and offers anymore for fear of being picked off. Then the HFTs will reduce their size too as they no longer know where the market is.

crazy.
 
freedinner said:
If regulators succeed in weeding out false bids and offers, nobody will post real bids and offers anymore for fear of being picked off. Then the HFTs will reduce their size too as they no longer know where the market is.

crazy.
More...
People should place orders at market. Then there is no order book anymore as it appears now.
 
Duffy is blaming everyone except.....HIMSELF....and for a good reason.
The CME Group can easily stop laying and spoofing with their order-matching software.
But they refuse to do it because of potential loss of fee income.

The problem is: the CFTC is too stupid to understand or figure this out.
After all, their programmer failed to spot Nav's activity at all.
 
Accused "flash crash" trader tells UK court: "I did nothing wrong"
LONDON

May 6 (Reuters) - The British trader fighting extradition to the United States on charges of having contributed to the 2010 'flash crash' on Wall Street told a London court on Wednesday he had done nothing wrong and was just good at his job.

Navinder Singh Sarao, 36, who traded from his parents' modest home in west London, has been charged by the U.S. Justice Department with wire fraud, commodities fraud and market manipulation.

"I've not done anything wrong apart from being good at my job. How is this allowed to go on, man?" Sarao said at Westminster Magistrates' Court.

Two weeks ago, Sarao was granted bail pending a full extradition hearing later this year provided he produced just over 5 million pounds ($7.6 million) and met other conditions.

But he has failed to raise the money and his lawyer asked for the bail surety to be lowered to 50,000 pounds on Wednesday. This was rejected by District Judge Elizabeth Roscoe and Sarao remains in custody.

"I will not vary bail. I will leave it as it is," Roscoe told Sarao and his legal team.
 
The British financial trader accused of contributing to a multi-billion dollar stock market crash from his parents’ home, has asked to be bailed without providing £5m in security because his funds have been frozen by US authorities.

Navinder Singh Sarao, 36, who is fighting extradition to the US on 22 counts of fraud and commodity manipulation, has been remanded in custody for two weeks after failing to make his bail conditions, even though his lawyers said his trading account contained £5m.

However, at Westminster magistrates court on Wednesday, Sarao’s lawyers said they had now learned that the trader’s assets were subject to a worldwide freezing order and that it would be impossible to find the monies. They asked that Sarao be freed to await a full hearing on his extradition in September, with only £50,000 provided as security by his parents.

Sarao’s legal team said: “It is impossible to supply the security that was ordered as a condition of his bail. It is rather surprising that this was not brought to the court’s attention by the American authorities.”

The court has adjourned for 15 minutes while the prosecution considers the application.
 
freedinner said:
If regulators succeed in weeding out false bids and offers, nobody will post real bids and offers anymore for fear of being picked off. Then the HFTs will reduce their size too as they no longer know where the market is.

crazy.
More...

That does not seem to make sense to me, no offense meant - "real" bids and offers WANT to get filled. The orders are "real" because they definitely want to get filled at their price of interest. They are going to keep that bid or offer in the order book until it becomes best and gets filled. The very definition of trading is to actually buy and sell - and not to "pretend" to or make ruses of false intentions. To make money in markets, you have to actually have a position on.
 
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