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

RE: "£14m of administrative expenses and costs including a £2m outflow on an unnamed capital expenditure item."

I wonder how much of this was for strippers, hookers, and lap dances ?
 
Tsing Tao said:
Between 12:33 p.m. CT -1:45 p.m. CT, Defendants placed a total of 135 orders with 188 or 289 lots on the sell-side of the Order Book, totaling 32,046 contracts. Of these 135 188/289-lot orders, 132 orders were canceled without resulting in execution.
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Can someone tell me the significance of the 188 or 289 ? How were those lot sizes determined ?
Why not 187 or 290 or.....whatever.
 
syswizard said:
Can someone tell me the significance of the 188 or 289 ? How were those lot sizes determined ?
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Article said they were his lucky numbers.

By the way whoever uncovered him wasn't a whistle blower. He is a private investigator or a couch detective, shall I say. A whistle blower is an insider who doesn't need to do extra detective work and blows the whistle mostly because of moral issues (the extra money is just that, extra).

Unless the person was Sarao's secretary or a friend (he had neither) ratting him out, but that is not what the article said...
 
Gamer said:
Or the programmer who coded his algo.
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That is actually a good guess, except the algo guy once figuring that he could get a few millions buy uncovering the client wouldn't wait 5 years. But who knows maybe he was reported years ago and the authorities waited until the very last eligible days...

Here is what I could see happening: Algo guy reports him like 4 years ago, after he investigated him and he has more evidence. Authorities are slow and sitting on it. Then somebody a few months ago does the math and figure it out that they have time only until May 6th, so they finally act on the tip....
 
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It will be interesting to see whether they can pin flash crash on him. Seems remote, as far as I can recall, price action preceding the event was weakening and I am certain once it broke a key level all sorts of other algos from other firms kicked into sell gear. His defence would probably have to dig out historical data when similar events unfolded purely based on market sentiment.
 
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