The Sarao affair this week has highlighted the murky world of prop trading in the 21st century but what will be its impact?
The arrest on Tuesday on Navinder Singh
Sarao has shone the spotlight on various aspects of the futures
trading market and the regulators are not going to like what
they are seeing.
The prop trader is accused of using an
automated trading programme and a technique known as "dynamic
layering" to affect the price of E-mini contracts ahead of the
infamous May 6 2010 Flash Crash in the US.
The charges include one count of wire
fraud, 10 counts of commodities fraud, 10 counts of commodities
manipulation and one count of spoofing, a practice of placing
an order with the intent of cancelling it before it can be
The 22 charges could see a maximum
sentence of some 380 years.
This article is available to subscribers and registered users
Please log in to continue reading.
Not yet registered? Take a free trial.
If you have already taken a free trial you
have ongoing access to the analysis section of FOW.com including this story.
Log in using your details below to read.
Already have an account? |