UK 'flash crash' trader appears in court - BBC News
A UK financial trader accused of contributing to the 2010 Wall Street "flash crash" has appeared in court.
The US Department of Justice wants to extradite Navinder Singh Sarao, 36, on charges of wire fraud, commodities fraud and market manipulation.
During the flash crash of 6 May 2010, the Dow Jones index lost 700 points in a matter of minutes - wiping about $800bn off the value off US shares - before recovering just as quickly.
Separately, US regulators filed civil claims against Mr Sarao, adding that he made $40m (£27m) over five years.
[h=2]Amazing insight'[/h]"This is like something out of a thriller - it's a most remarkable story," said BBC economics editor Robert Peston.
"The allegation is that he was sending what are known as spoof orders to sell futures contracts in the US stock market. He would drive the price of the stock down... then withdraw the sell orders, but the price would already have fallen.
"He would then buy the orders back and guarantee a profit for himself. According the charge sheet, he did this thousands and thousands of times over many years.
"This is an amazing insight into the way computers have completely transformed the stock market business."
A UK financial trader accused of contributing to the 2010 Wall Street "flash crash" has appeared in court.
The US Department of Justice wants to extradite Navinder Singh Sarao, 36, on charges of wire fraud, commodities fraud and market manipulation.
During the flash crash of 6 May 2010, the Dow Jones index lost 700 points in a matter of minutes - wiping about $800bn off the value off US shares - before recovering just as quickly.
Separately, US regulators filed civil claims against Mr Sarao, adding that he made $40m (£27m) over five years.
[h=2]Amazing insight'[/h]"This is like something out of a thriller - it's a most remarkable story," said BBC economics editor Robert Peston.
"The allegation is that he was sending what are known as spoof orders to sell futures contracts in the US stock market. He would drive the price of the stock down... then withdraw the sell orders, but the price would already have fallen.
"He would then buy the orders back and guarantee a profit for himself. According the charge sheet, he did this thousands and thousands of times over many years.
"This is an amazing insight into the way computers have completely transformed the stock market business."