“A futures trader was arrested in Britain for his alleged involvement in the .flash crash. of 2010 in which the Dow Jones industrial average plunged 600 points in five minutes,” The Associated press reports. “After the arrest Tuesday of Navinder Singh Sarao, American authorities — who are seeking Sarao’s extradition — unsealed a federal criminal complaint in Chicago charging him with multiple counts of fraud and manipulation.”
“The complaint says Sarao, 37, used an automated trading program to manipulate the market for E-Mini S&P 500 futures contracts on the Chicago Mercantile Exchange,” AP reports. “Saroa’s manipulation of trades ‘earned him significant profits,’ a statement from the U.S. Department of Justice alleges.”
“The United States is seeking Sarao’s extradition, the Department of Justice statement says,” AP reports. “Sarao is charged with one count of wire fraud, 10 counts of commodities fraud, 10 counts of commodities manipulation and one count of ‘spoofing.’ Spoofing involves bidding with the intent of quickly canceling the bid.”
Read more in the full article here.
MacDailyNews Take: Better late than never. Hopefully this finally sends a message to anyone else who gets the bright idea to attempt to illegally manipulate and defraud the markets.
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