Flash Crash Trader’s Trial Continues
The trial of Navinder Singh Sarao, the British trader charged with misconduct, is ramping up in the United Kingdom (UK) High Court in London. Sarao is being charged with allegedly contributing to the ‘flash crash’ in 2010. Findings from the Department of Justice (DOJ) prompted Sarao’s arrest nearly a month ago. Since then he has been in custody, with failed attempts to meet bail requirements. With his accounts frozen, Sarao is receiving legal aid.
The DOJ alleges that Sarao claimed $40 million through illegal trading and “spoofing” the financial markets. Notably, however, Sarao filed several complaints to the Chicago Mercantile Exchange (CME) against fellow traders engaging in similar misconduct and manipulation in the weeks leading up to his arrest. The DOJ will likely follow up on these complaints, resulting in additional investigations.