US ‘Flash Crash’: Spoofing Wall Street, Phantom Orders And Other Market Abuses
ByInsider trading and fraud in financial markets can never be fully eradicated, as highlighted only too well by the multi-billion rogue trading cases involving Jérôme Kerviel, who lost French bank Société Générale €4.9bn in 2008, Kweku Adoboli at UBS in 2011 and Barings’ Nick Leeson. Now the name Navinder Singh Sarao joins the list over the US ‘flash crash’.
According to the US authorities in the shape of the US Department of Justice, London-based futures trader Sarao, had a hand in sending the Dow Jones Industrial Average (Dow) on a 600-point wild plunge on 6 May 2010 in the space of five minutes. The US Commodity Futures Trading Commission (CFTC) alleges that Sarao and his firm, Nav Sarao Futures Ltd., manipulated the E-Mini S&P500 futures contract provided by theCME Group …
US ‘Flash Crash’: Spoofing Wall Street, Phantom Orders And Other Market Abuses
