[url]http://www.bbc.co.uk/news/business-32608295[/url]
[quote]A UK trader accused of contributing to the 2010 Wall Street "flash crash" has protested his innocence in court, saying he did not "do anything wrong".
Navinder Singh Sarao, 36, has been charged with wire fraud, commodities fraud and market manipulation by the US Justice Department (DOJ).
Mr Sarao denies the charges but was remanded in custody for the third time after failing to raise £5.05m in bail.
His lawyers' request that bail be lowered to £50,000 was refused.[/quote]
Guy's a fucking idiot, why would you even risk that shit when you can already rob people blind in his profession?
Jeez, maybe hes actually innocent, since he actually got charged with a crime.
Seems rather rare in that profession.
I get that he feels bad but there's no need to compare himself to Hitler
[QUOTE=smurfy;47672799]I get that he feels bad but there's no need to compare himself to Hitler[/QUOTE]
Trying too hard here.
They thought they could get away with anything, no sympathies.
High-frequency trading is totally legal. Around half of trades made in the US are done with high-frequency algorithms.
-snipped part-
[b]EDIT:[/b] On further reading he layered bids, which is market manipulation. So he did something wrong.
[b]EDIT 2:[/b] I should probably explain this a bit.
HFT is legal and many say it contributes to the efficiency of the markets. It is unfair to you and me, but it works, it's interesting, and it's legal.
Layering is a form of market manipulation where you place buy or sell orders you don't intend to carry out with the intention of "spoofing" demand or supply. So, when you place those orders, HFT algorithms think "oh, someone has twenty zillion shares that they want to sell, so there's a whole hell of a lot of supply" and they adjust their trading patterns automatically.
Layering, as a form of market manipulation, is [i]illegal[/i] because those orders are technically fraudulent, even if they only exist very briefly and aren't actually backed by anything. You can make money by layering, but it also has the side effect of fucking up a lot of shit, as we saw here.
So, illegal.
If I recall correctly there is a graph that actually shows his shit stopped a few minutes before the flash crash and resumed a few minutes after. Also if I recall correctly he was setting up fake buy orders only to remove them milliseconds later, but long enough for the bots to act on it and lower their prices, although that might have been another thing I was reading up on.
[QUOTE=Rapscallion92;47672782]Guy's a fucking idiot, why would you even risk that shit when you can already rob people blind in his profession?[/QUOTE]
Sorry, who is it that day traders rob again?
Withdrawing large volume orders to manipulate the market is clearly illegal, although it will have to be seen how he can argue that this was just him changing his mind.
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