Navinder Singh Carofoto: Matt Dunham / AP
Hit the US stock market trader-autistic out of jail. After several years of proceedings, the court has sent under house arrest 41-year-old Briton Navinder of Saraa, which may 6, 2010 market in minutes lost a trillion dollars. It is reported Bloomberg.
This is the so-called “Black Thursday” or Flash Crash — when the Dow Jones fell by four percent, then in just five minutes, fell a further five. This was the largest fall in a single session in the history of the index. The culprit was found in 2015 — he was a Briton of Indian origin, Navinder of Sara, who suffers from Asperger’s disorder autistic character.
With the help of software written for it by the programmer, Sarao directly from his room in his parents ‘ home was placed on the exchange of thousands of applications for large amounts, which were cancelled immediately after placing. It distorts the real picture of demand and supply in the market and forced other traders to submit bids about the level of the program, leading to an unnatural rise or fall of prices. Sarao earned on their differences.
On may 6 the trader shorted the market while lowering contracts E-mini. He posted on the exchange bids for a total volume of about 200 million dollars, which amounted to almost a third of all outstanding at the time of the proposals. This caused a panic and a collapse in the market.
Navinder of Sara arrested in 2016 and for several months put in jail in the UK. Then he was extradited to the U.S., where the investigation into his activities was conducted until January 2020. The investigation found that the trader could earn millions of dollars a day, however, was indifferent to wealth and is not actually spent their hard earned. During his side stood even the Prosecutor, opposing the premises of a suspect to jail.
Mild punishment was facilitated by the fact that in 2016 the trader made a deal with the investigation — he showed how the mechanisms of stock manipulation and how the scammers make money. Using the information he provided the government reprogrammed the software that is used for fraud detection, which allowed to calculate and charge more than ten traders.
Video, photo All from Russia.