UK 'flash crash trader'

[WolfAir]

TTwiggy said:

He's foreign and possibly Muslim. I'm surprised they haven't pinned 911 on him.

Navinder Singh, He is a Sikh.

[NicD]

The US authorities have had nearly five years to investigate, so i would be surprised if the prosecution is not in order.
They also have securities laws with teeth, unlike the pathetic regulation in the UK.

This chap appeared to have direct access c/o Credit First Swiss, who would have agreements in place not to enter fraudulent trades (trades they have no intention of honouring) or to manipulate the market.

The two questions I have are; where are the profits and who will play him in the (yet to be announced) film?

[papercup]

dudleybloke said:

So did he have a copy of the orange crop forecast off Clarence Beaks?

or pork bellies, which is used to make bacon, which you might find in a 'bacon and lettuce and tomato' sandwich.

[Digga]

WolfAir said:

TTwiggy said:

He's foreign and possibly Muslim. I'm surprised they haven't pinned 911 on him.

Navinder Singh, He is a Sikh.

Beat me too it, but I agree with the sentiment of TTwiggy; yet another bit of US foreign policy which unwittingly paints them in a very poor light.

Let's hope the chap can find a way of escaping to stay with relatives in India.

[xjsdriver]

I don't think they'll make a film on it....who wants to bet?.... "shall we make our usual amount?" "what?....a dollar?" that'll do nicely.....

[Pickled Piper]

Shouldn't they be offering him a job rather than trying to prosecute him?

[Hoofy]

Pickled Piper said:

Shouldn't they be offering him a job rather than trying to prosecute him?

As an orange jumpsuit fashion model?

[Foliage]

I didn't think he would be able to interact with the US market fast enough from the UK due to latency to actually do this, and where is the money, doesn't seem like he spent it? this is fishier than a fish fishing with fish for fish.

[TTwiggy]

Digga said:

WolfAir said:

TTwiggy said:

He's foreign and possibly Muslim. I'm surprised they haven't pinned 911 on him.

Navinder Singh, He is a Sikh.

Beat me too it, but I agree with the sentiment of TTwiggy; yet another bit of US foreign policy which unwittingly paints them in a very poor light.

Let's hope the chap can find a way of escaping to stay with relatives in India.

My comment was tongue in cheek - though I wouldn't put it past the 'Mercans thinking that anyone in a turban is a terrorist.

[Du1point8]

Foliage said:

I didn't think he would be able to interact with the US market fast enough from the UK due to latency to actually do this, and where is the money, doesn't seem like he spent it? this is fishier than a fish fishing with fish for fish.

I would be thinking this too... Even if he was using TCP or raw packet messaging, the latency for going across the pond would be in the region of 0.5 seconds.

He could use UDP but then there are issues with errors in the messaging, but still that doesnt go that fast that he can manipulate the market.

I know of a couple of experimental data transfer protocols, but the chance of him using one is zip.

Something is a little fishy.

[fido]

This isn't going to be the sequel to 'Boiler Room'.

[Shaoxter]

TTwiggy said:

Digga said:

WolfAir said:

TTwiggy said:

He's foreign and possibly Muslim. I'm surprised they haven't pinned 911 on him.

Navinder Singh, He is a Sikh.

Beat me too it, but I agree with the sentiment of TTwiggy; yet another bit of US foreign policy which unwittingly paints them in a very poor light.

Let's hope the chap can find a way of escaping to stay with relatives in India.

My comment was tongue in cheek - though I wouldn't put it past the 'Mercans thinking that anyone in a turban is a terrorist.

http://www.huffingtonpost.com/2012/08/07/history-o...

[ReallyReallyGood]

Du1point8 said:

I would be thinking this too... Even if he was using TCP or raw packet messaging, the latency for going across the pond would be in the region of 0.5 seconds.

He could use UDP but then there are issues with errors in the messaging, but still that doesnt go that fast that he can manipulate the market.

I know of a couple of experimental data transfer protocols, but the chance of him using one is zip.

Something is a little fishy.

I would suspect his firm's trading software is running on a server co-located at the exchange, with practically zero network latency, as all HFT firms do. From the UK all he needs to do is tweak some parameters that control the algorithm's behaviour, but the order execution can be done in the US.

[Art0ir]

Weren't Goldman Sachs caught doing something similar, only for the NYSE to stop publishing the data that lead to the discovery?

[TallMark]

ReallyReallyGood said:

Du1point8 said:

I would be thinking this too... Even if he was using TCP or raw packet messaging, the latency for going across the pond would be in the region of 0.5 seconds.

He could use UDP but then there are issues with errors in the messaging, but still that doesnt go that fast that he can manipulate the market.

I know of a couple of experimental data transfer protocols, but the chance of him using one is zip.

Something is a little fishy.

I would suspect his firm's trading software is running on a server co-located at the exchange, with practically zero network latency, as all HFT firms do. From the UK all he needs to do is tweak some parameters that control the algorithm's behaviour, but the order execution can be done in the US.

I agree. Incidentally, for the poster above, the usual latency from the UK (say LD4 datacentre) to CME is approx 40ms each way, so much quicker than you'd think. Typically 33 to NY, and 7.5 from NY to Chicago, but other routes are available and may be faster. When you think about it its really quite impressive.

[Digga]

Art0ir said:

Weren't Goldman Sachs caught doing something similar, only for the NYSE to stop publishing the data that lead to the discovery?

It's okay, they had a CFD from their mum.

[anonymous-user]

hidetheelephants said:

What net benefit do we get from these edjits and their HFT nonsense?

Almost choice bid offer spreads, practically free brokerage and effectively instant execution.

[anonymous-user]

WolfAir said:

TTwiggy said:

He's foreign and possibly Muslim. I'm surprised they haven't pinned 911 on him.

Navinder Singh, He is a Sikh.

Close enough. We're talking about Americans here.

[anonymous-user]

ReallyReallyGood said:

I would suspect his firm's trading software is running on a server co-located at the exchange, with practically zero network latency, as all HFT firms do. From the UK all he needs to do is tweak some parameters that control the algorithm's behaviour, but the order execution can be done in the US.

You think it would be affordable for a guy reportedly making $10m a year, I thought space on those servers was more expensive and restricted than that? Not my area I admit. If he were running such a simple scam the major HFT's would have been all over it in no time. In any event does a strategy that supposedly enters a big sell order, buys on dip, cancels sell order, sells on uptick really make money on a day the market collapses 1000 points; IMO it gets run over, badly. Something doesn't add up here. IMO either he is far, far more sophisticated than reported or he is being stitched up.

[camelot1971]

Well, apparently he paid his bail of £5million so he must have been doing something right (or wrong!)