Flash crash (wallop): UK trader arrested over 2010 Wall Street micro-crash

US wants to extradite Navinder Singh Sarao for share price manipulation

A stock market crash that wiped billions of dollars from US shares has been blamed on a British trader from Hounslow.

Navinder Singh Sarao, 36, is accused of using automated computer software to commit wire fraud, commodities fraud and stock market manipulation.

The 2010 “flash crash” saw share prices in the US plunge momentarily, before quickly rebounding again.

Flash Crash 2010

In a statement, the Justice Department said: “Sarao’s alleged manipulation earned him significant profits and contributed to a major drop in the US stock market on May 6, 2010.

“By allegedly placing multiple, simultaneous, large-volume sell orders at different price points - a technique known as ‘layering’ - Sarao created the appearance of substantial supply in the market.”

Sarao is due to appear at an extradition hearing at Westminster Crown Court today.

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Readers' comments (2)

  • More a case of incompetent systems, if the deals where legitimate then no crime, other than an incompetent US stock market system!

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  • The definition of a crime is an activity that breaches legislation.

    Placing multiple sell orders that cannot possibly be carried out is a fraudulent activity and it's illegal.

    So the deals were not legitimate, and a crime has been committed.

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