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

[Ditch]

I completely agree. Although streetprofessor is right too. What he did was illegal, but he did not cause this dip in the market.
But there is one very important remark:
They should catch all criminals who do, or did, the same so also big funds and banks.

Or charge "not executed" orders.

If they don't prosecute other parties as well, his attorneys will certainly use that to his defence.

 

[debitspread]

but he did not cause this dip in the market

Of course he didn't cause Seis De Mayo -- no one but the lowest-information tabloid reader thinks he did. That's a straw man. The question on the table is, were all his orders bona fide? From what I've seen, the answer is "no."

 

[syswizard]

Furthermore, how do Michael Coscia & Nav get such criminal charges laid on their feet when Igor Oystacher did the EXACT same thing just this past fall and received minimal reprimand?
CFTC need to get this through their coke bottle glasses

As someone alluded to in an earlier post, this is similar to the Julian Assange situation who exposed authorities weaknesses and they essentially retaliated.
The CFTC has to move forward on this if ONLY TO SAVE FACE. If you read the article, their programmer COULD NOT FIND EVIDENCE OF THE SPOOFING FROM THE ORDER DATA.
It took an independent investigator, similar to the one that caught Bernie Madoff, to discover the spoofing. Wow, this makes the CFTC look so bad....and note the hush-hush from the CME Group on this as well.

The question is "How did that investigator get notified of Nav's activities ?".
I'll bet a jealous former friend ratted him out.

 

[Ditch]

Of course he didn't cause Seis De Mayo -- no one but the lowest-information tabloid reader thinks he did. That's a straw man. The question on the table is, were all his orders bona fide? From what I've seen, the answer is "no."

In court it's not so simple as that, the CME has done absolutely nothing to stop this rampant practice, that has been going on for years now.

 

[syswizard]

the CME has done absolutely nothing to stop this rampant practice, that has been going on for years now.

Ding, ding, ding....WINNER-WINNER, CHICKEN DINNER.

Imagine this scenario: The CFTC goes after the CME Group and threatens to shut them down.

 

[i am nobody]

In court it's not so simple as that, the CME has done absolutely nothing to stop this rampant practice, that has been going on for years now.

Exactly. The practice was "tolerated" and now they take one small fish and want to make an example. The fact that till now nobody was ever convicted makes it difficult to convict now one trader. They should prosecute ALL the spoofers or none. The law should be applied to everybody in the same way. We will see now how just American justice is.

 

[Syprik]

This "sentiment" misses the point. The evidence is quite strong he was manipulating the market, entering orders that weren't bona fide. Of course he'll have his day in court on that (unless he skips out). It's totally irrelevant whether he "caused" Seis De Mayo, or whether "XYZ HFT shop (or XYZ Wall St firm, or...) does it too."

Exactly. And that is where I fall, as does streetproof (at least that is my take). IMO Nav should be fined respective to the illicit gains and banned from CME for at least a few yrs (if not expelled) for the spoofing. I'd personally vote to permanently revoke his membership. But keep it inline with the penalties of Igor and others this past fall. But trying to tie it in to the flash crash, which will have a greater impact on judge/jury/sentencing, is going to need to be airtight. Can't help but feel they did this as a publicity stunt of sorts.

 

[debitspread]

If they don't prosecute other parties as well, his attorneys will certainly use that to his defence.

Sure, attorneys will use anything they can. They'll also trot out his Grandma & his clergyman & his Cub Scout den leader to attest to what a fine young man he is. But that's all white noise. The evidence is clear, or appears to be. It's a simple case, and all the posters on this thread want to make it complicated. Maybe 0hedge is causing brain rot.

 

[Ditch]

Sure, attorneys will use anything they can. They'll also trot out his Grandma & his clergyman & his Cub Scout den leader to attest to what a fine young man he is. But that's all white noise. The evidence is clear, or appears to be. It's a simple case, and all the posters on this thread want to make it complicated. Maybe 0hedge is causing brain rot.

Attorneys get paid to make simple cases complicated, that's how they get defendants off the hook. It will be very interesting to watch the performance of the CFTC if it gets to court.

 

[Pekelo]

I think he should be prosecuted for being a bad son. Having 40 mil on the Caymans and letting your mommy work 2 jobs? WTF? Using their shitty car and not even buying them a Subaru???
Investing 2 mill in some stupid gaming start up, but not kicking in money with the household expenses???

I say 5 years as a minimum.... But he could get a movie deal called:

The 36 year old multimillionaire virgin....