Breaking News

Rogue Man Arrested as Major Cause of 2010’s Flash Crash
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

single man arrested

Summary: A single-man has been identified as a major cause in the “Flash crash” of 2010.

The “Flash crash” that rocked global financial markets 5 years ago in 15 minutes of panic has finally been pinpointed to be the result of a single man’s foul play, more or less: This Tuesday, United States prosecutors identified 36-year-old Navinder Singh Sarao as a central culprit, a sole man manipulating the markets through a crime called “spoofing.”

  
What
Where


This is one of the vulnerabilities and exploits of today’s high-frequency trading. Sarao stands accused of entering and withdrawing thousands of orders, each worth tens of millions of dollars apiece, across various trading days in order to lower the price of futures contracts. Once the contract prices are artificially lowered in this manner, he buys them and profits on their subsequent rise.

Sarao is believed to have made $40 million this way over the course of 4 years.

And his manipulations had the dire effect of the flash crash on May 6, 2010, when he placed large orders over several hours, which bled into other markets, ultimately causing the Dow Jones industrial average to plummet 600 points in a few minutes.

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!




For this, Sarao is in British custody, pending extradition from the United States, facing wire fraud and commodities fraud charges.

That a rogue figure could cause world markets to crash counts as a huge flaw in the system as is, and will lead, no doubt, to heightened securities and other precautions.



News Source: NYTimes



 

RELEVANT JOBS

Full-time Family Law Attorney (s)

USA-PA-Camp Hill

Boutique family law firm in Central Pennsylvania is seeking 1 or more associate attorneys interested...

Apply now

Assistant Director, Investigations Division

USA-NJ-Trenton

The Investigations Division of the Office of the State Comptroller (OSC) seeks a motivated and commi...

Apply now

Staff Attorney

USA-VA-Dulles

Staff Attorney Join a member-driven leader in a fast-paced, challenging and collaborative environ...

Apply now

Office Admin / Receptionist

USA-CA-Los Angeles

Office Administrator / Receptionist Position  The Kenner Law Firm is hiring an Office Admini...

Apply now

BCG FEATURED JOB

Locations:

Keyword:



Search Now

International Trust and Estates Attorney

USA-NY-New York City

New York City office of a BCG Attorney Search Top Ranked Law Firm seeks an international trust and e...

Apply Now

Real Estate Attorney

USA-NY-New York City

New York City office of a BCG Attorney Search Top Ranked Law Firm seeks a Real Estate Attorney with ...

Apply Now

Litigation Associate Attorney

USA-CA-Los Angeles

Los Angeles office of a BCG Attorney Search Top Ranked Law Firm seeks a litigation associate attorne...

Apply Now

SEARCH IN ARCHIVE

To Top