3 ms·
read the articles - post Flash Crash they changed the rules to explicitly bar the practice, but this case alleges that spoofing was also illegal under a differe
by conitpicker 11y ago
read the articles - post Flash Crash they changed the rules to explicitly bar the practice, but this case alleges that spoofing was also illegal under a different rule.
The PDF was linked from: http://www.wsj.com/articles/u-k-man-arrested-on-charges-tied-to-may-2010-flash-crash-1429636758 http://www.wsj.com/articles/u-k-man-arrested-on-charges-tied...
"The case is part of a crackdown by criminal and regulatory authorities on manipulative tactics used by high-speed traders, including spoofing, which was specifically outlawed in the 2010 Dodd-Frank financial overhaul law.
That law was enacted after the flash crash; the CFTC is alleging that Mr. Sarao violated the Commodities Exchange Act, which also prohibits manipulative trading. It is also alleging that he violated the anti-spoofing law for trading he engaged in beginning in 2011."
- akhatri_aus 11y agoI get that. Its just quote stuffing still exists, at least according to nanex. Wouldn't that be spoofing too? Also this guy seemed to do this from his small house, on his own in Hounslow without any significant infrastructure, with terrible cross atlantic latency. It just seems so wrong that hes charged yet anything engaging in quote stuffing is let go. He uses a @hotmail email address. It's just so extreme how he seems out of place. Somehow he had the resources to crash the market, or even cause a small portion of the damage in huge, liquid markets? The S&P EMini is probably near the top 5 most liquid instruments on earth.