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

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.
 
just21 said:

By James Quinn, Group Business Editor

...Mr Sarao, a futures trader who worked alone from his west London home...
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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.
 
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.
 
WeToddDid2 said:
So some guy with probably not much capital on a relative basis used an off-the-shelf algo program that is probably very similar to the programs that a lot a traders on the board use. Coded it to spoof and then blew up the whole market. Blaming the flash crash on him sounds like bull shit to me.

Didn't the useless SEC do an investigation that took months that blamed the flash crash all on Waddell and Reed?
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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.
 
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