'Flash crash' trader sentenced to one year of home detention (2024)

FAQs

Who is Nav the Bedroom Trader? ›

Navinder Singh Sarao, a UK trader, gained notoriety for his alleged role in the 2010 'Flash Crash'. Operating from his parents' bedroom in West London, he used computer algorithms to manipulate markets, amassing $40 million.

The Dow Jones Industrial Average plunged more than 600 points in minutes, the S&P 500 fell by over 9%, and the Nasdaq Composite Index also experienced a significant decline, losing over 7% of its value. The flash crash persisted for 36 nerve-wracking minutes before the markets began to stabilize.

Rogue trader sent to prison for fraud

Leonard Jesse James Richards, of Whitemoor, St Austell, was given a 16-month prison sentence on Friday after pleading guilty to three counts of fraud.

On April 21, 2015, nearly five years after the incident, the U.S. Department of Justice laid 22 criminal counts, including fraud and market manipulation against Navinder Singh Sarao, a British Indian financial trader.

Though the band has been on indefinite hiatus since 2003, the members continue to work together on the Fugazi Live Series archive project, which officially launched on December 1, 2011.

The hiatus was brought on by the band members' insistence on spending more time with their families and pursuing other professional projects. Since Fugazi went on hiatus in 2003, rumors began circulating about a reunion, with some insinuating that the band may get back together to headline the Coachella Festival.

Fugazi became known for its intense live performances, marked by consistently tight sets and the magnetic stage presences of MacKaye and Picciotto. Onstage, the band utilized its trademark sound—the buildup of extreme tension followed by calm—to draw its audience into a visceral, emotional experience.

Despite facing as much as eight years in prison, on Tuesday the Federal Judge Virginia Kendall sentenced Sarao — who suffers from severe Asperger's — to just one year of supervised release.

Spoofing (also referred to as 'layering') is a term used to describe a form of market manipulation where traders place a bid or offer with no intention of fulfilling it, instead cancelling the bid or offer before execution.

During a decade of day trading, having started more or less from scratch, CIS has amassed a fortune that he says now exceeds ¥16 billion. In the process, he has become a cult figure among Japanese day traders, a tight circle of self-taught professionals who take pride in working one of the world's toughest markets.

How much money was lost in the Flash Crash? ›

Nevertheless, the Flash Crash took away around $1 trillion in the market value.

One of the most famous examples of a flash crash in recent history occurred on May 6, 2010, beginning shortly after 2:30 p.m.3 During the flash crash, the Dow Jones Industrial Average (DJIA) fell more than 1,000 points in 10 minutes—the biggest drop in history at that point.

There were rumors that Citigroup had accidentally sold a large basket of European stocks over the market. Later in the afternoon Nasdaq confirmed that the flash crash was due to a very large accidental sell order by a market participant, a so-called fat-finger error.

There were rumors that Citigroup had accidentally sold a large basket of European stocks over the market. Later in the afternoon Nasdaq confirmed that the flash crash was due to a very large accidental sell order by a market participant, a so-called fat-finger error.

At that time, Nicolas Darvas was a dancer and came down to the stock market accidentally and hence, is also known as an Accidental trader.

A trader at the U.S. firm made a mistake “inputting a transaction,” Citigroup said late on Monday after a knee-jerk selloff in Swedish stocks in five minutes wreaked havoc in bourses from Paris to Warsaw. The bank said it identified the error “within minutes” and corrected it.

The self-taught UK trader who made millions in bogus trades and contributed to a brief 2010 crash in the US stock market has been sentenced to a year of home confinement. Navinder Sarao, who pleaded guilty in 2016 to fraud and market "spoofing", faced up to eight years in prison.