The market of the United States seems to be have been manipulated by a day-trader, based out of London, whereby the subject has been held accused. The manipulation supposedly resulted in the "flash crash" of Wall Street in the year of 2010. Moreover, the accused failed to postpone “his extradition hearing” on Monday as the court didn’t grant him the permission.
The accused, Navinder Sarao was taken into custody by the British police in the month of April. He lived near the Heathrow Airport at London in a “small house” accompanied by his parent. The arrest was followed by “a U.S. extradition warrant” which charged him with “wire fraud, commodities fraud and market manipulation by the U.S. Justice Department”. However, he received a bail grant and was released after a period of four months which he spent in jail.
The Westminster Magistrates Court was approached by his defence lawyer, James Lewis, he urged the court to grant the accuse “more time” so that he can avail “expert evidence about trading and how the market worked to help address the issue of whether Sarao had made false representations through his trading activity”.
Unfortunately, for some reasons, the district judge, Quentin Purdy “rejected the application” of time extension. According to him, the expert evidence was not necessary to help him take his decision which, the Reuters reports:
“...was not the facts of the case but rather whether the U.S. charges would also be offences under English law”.
Nevertheless, the final hearing is scheduled on the 25th of September 2015. Thanks to the flash crash the industrial average of Dow Jones took a plunge of “more than 1,000 points on May 6, 2010”. As a result, almost “$1 trillion” were “temporarily” wiped out from its market value.
Sarao is 36 year old and he has been charged guilty of using “an automated program” which created “large sell order” consequently reducing the share prices. Subsequently, he cancelled the trades and made a loe price purchase of those contracts, whereby made an estimated profit of “$40 million profit” on his trading. However, he denied that he has committed any crime as he stated in Westminster court:
"I've not done anything wrong apart from being good at my job."
Source(s): Reuters.com
The accused, Navinder Sarao was taken into custody by the British police in the month of April. He lived near the Heathrow Airport at London in a “small house” accompanied by his parent. The arrest was followed by “a U.S. extradition warrant” which charged him with “wire fraud, commodities fraud and market manipulation by the U.S. Justice Department”. However, he received a bail grant and was released after a period of four months which he spent in jail.
The Westminster Magistrates Court was approached by his defence lawyer, James Lewis, he urged the court to grant the accuse “more time” so that he can avail “expert evidence about trading and how the market worked to help address the issue of whether Sarao had made false representations through his trading activity”.
Unfortunately, for some reasons, the district judge, Quentin Purdy “rejected the application” of time extension. According to him, the expert evidence was not necessary to help him take his decision which, the Reuters reports:
“...was not the facts of the case but rather whether the U.S. charges would also be offences under English law”.
Nevertheless, the final hearing is scheduled on the 25th of September 2015. Thanks to the flash crash the industrial average of Dow Jones took a plunge of “more than 1,000 points on May 6, 2010”. As a result, almost “$1 trillion” were “temporarily” wiped out from its market value.
Sarao is 36 year old and he has been charged guilty of using “an automated program” which created “large sell order” consequently reducing the share prices. Subsequently, he cancelled the trades and made a loe price purchase of those contracts, whereby made an estimated profit of “$40 million profit” on his trading. However, he denied that he has committed any crime as he stated in Westminster court:
"I've not done anything wrong apart from being good at my job."
Source(s): Reuters.com
