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



 

Interesting Legal Sites You May Like


BCG FEATURED JOB

Locations:

Keyword:



Search Now

Senior Labor and Employment Attorney

USA-CA-Mountain View

Mountain View office of our client seeks senior labor and employment attorney with 4+ years of exper...

Apply Now

Labor and Employment Litigation Associate

USA-MA-Boston

Boston office of our client seeks labor and employment associate with 2-4 years of litigation experi...

Apply Now

Mid-level Corporate Lending Associate

USA-NC-Charlotte

Charlotte office of our client seeks mid-level corporate lending associate with 3+ years of experien...

Apply Now

Real Estate Attorney

USA-NJ-Iselin

Iselin office of our client seeks real estate attorney with experience. The candidate should have ex...

Apply Now

RELEVANT JOBS

Associate - Mid-Level - GL Group

USA-NY-Valhalla

Defense firm seeking mid-level associate for Westchester office to fill General Liability position. ...

Apply now

Mortgage Compliance Analyst

USA-MN-Minnetonka

Job Description: Rubicon Mortgage Advisors LLC, a locally-owned, boutique mortgage lender is seeki...

Apply now

Litigation Legal Assistant

USA-CA-Los Angeles

Qualifications: Candidate should have 2+ years of previous experience supporting multiple atto...

Apply now

Litigation Legal Assistant (10+ Years Experience)

USA-CA-Los Angeles

Qualifications: Candidate should have 10+ years of previous experience supporting multiple att...

Apply now

Most Popular

SEARCH IN ARCHIVE

To Top