The technology may have advanced to HFT Trading, algorithmic trading but the rogue inside the human will always overpower the technology.
Let’s try to understand the case of Navinder Singh Sarao , Has he became the scapegoat ?
According to the justice department Mr Sarao and his firm is guilty of Nav Sarao Futures, made £26m ($40m) illegally over five years.
He has been accused of using an “automated trading program” to manipulate markets, and contributing to the flash crash of 6 May 2010. On that day, the Dow Jones index lost 700 points in a matter of minutes – wiping about $800bn off the value of US shares – before recovering just as quickly. Continue reading “The case of Flash Crash Trader”
Last week Knight Capital Group lost $440 million when it sold all the stocks it accidentally bought because a computer glitch. Well Group ($KCG) lost $440 million – that’s aLmost as much as Zuckerberg loses each day!
When this story first broke, it was a bit different from other “algos gone wild” stories we’ve seen in recent history: there were 140 stocks affected, and they were on both the buy side and the sell side. We can say that the large programming trading desk, Continue reading “Desperate times Knight Capital !! Error or scandal”