May 2010 "Flash Crash" Perp Arrested Today

[OROBTC]

...

It took long enough, but they finally arrested the guy today in London who was responsable for the May 2010 Flash Crash on the US stock exchanges.  Many of you may recall that day when the Dow was down 900 points at one time that afternoon.  I sure as Hell do.

I had left my office to go do some recreational shooting at a nearby range, the Dow was down some 300 points when I left.  I called my brother just before walking in to fire off 100 rounds or so.  He told me the Dow was down 900 points...  WTF!!!  -600 points in 30 minutes!  When I later left the range, much of the market had recovered.  But still, a LOT of money and confidence was lost in our markets that day.

Throw the book at the SOB.  Read all about it:

http://www.zerohedge.com/news/2015-04-21/full-scapegoat-retard-trader-arrested-2010-flash-crash

http://www.zerohedge.com/news/2015-04-21/step-step-guide-how-crash-entire-market

*   *   *

This is a cautionary tale about "things digital".  While I am a happy hodler of BTC, I have always recommended owning physical gold (silver and/or platinum OK too).  While there IS manipulation of the "paper gold" markets, owning the metals and holding them yourselves (well hidden), gold will withstand these kinds of Flash Crashes.

Note that trading BTC on exchanges (etc.) might be vulnerable to these kinds of attacks.  Buy & Hold BTC is what I do...



EDIT:

1)  Waddell & Reed are apparently innocent, where do they go to get their reputation back?

2)  Jon Corzine is apparently NOT innocent!  When does he get put on trial?

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[Lauda]

Ah after 5 years the finally find the guy. Well it is a good thing that they don't give up in such scenarios. There are a lot of people that need to go down for similar actions.

rigged and manipulated market

I couldn't have said it better though. It's like most of the markets are corrupt now, being manipulated by people with the money. No wonder why many people get burned; in Bitcoin too.

[687_2]

This is a cautionary tale about "things digital".  While I am a happy hodler of BTC, I have always recommended owning physical gold (silver and/or platinum OK too).  While there IS manipulation of the "paper gold" markets, owning the metals and holding them yourselves (well hidden), gold will withstand these kinds of Flash Crashes.

"Flash crashes" happen due to HFT algorithms being used in a controlled environment, not the nature of the security being traded.

Note that trading BTC on exchanges (etc.) might be vulnerable to these kinds of attacks.  Buy & Hold BTC is what I do...

Robust information systems for XBT pricing (that cannot be manipulated) will be coming this year...so that's a good strategy!

[Amph]

if they can arrest those guys after such long time, then there is hope to find criminal of bitcoin too, maybe in 2-3 years, but police don't care about bitcoin this is the reason, otherwise i'm sure that bitcoin will face less criminality...

[medUSA]

I remember I was on the phone with a friend when it happened. We were talking for about half an hour (not about the stock market) and he had to go to see what's going on. He said everyone was trying to verify the indexes, all major financial websites took minutes to load. Reports assumed it was caused by another "fat finger" and trading algorithms. Now we know, it was a malicious attack.

[spazzdla]

This is utter horseshit... Guy games the system that cheats everyone and they spend millions to find him.. they should all rot in hell.  Pigs all of them disgusting unhuman pigs.

[BillyBobZorton]

Ah after 5 years the finally find the guy. Well it is a good thing that they don't give up in such scenarios. There are a lot of people that need to go down for similar actions.

rigged and manipulated market

I couldn't have said it better though. It's like most of the markets are corrupt now, being manipulated by people with the money. No wonder why many people get burned; in Bitcoin too.

Well, you can't expect an unregulated free market to not be manipulated at some extent. At least with Bitcoin we know due to it's superiority as a method to store wealth compared to anything else, they can't be manipulating the actual supply at their expense, this is a big relief.

[OROBTC]

...

More reporting on the nearly worthless and slow investigation of the Flash Crash.

Manipulated markets are now out the wazoo.  I wonder who is making the money.

http://www.zerohedge.com/news/2015-04-22/exposed-real-market-manipulator-behind-flash-crash

*   *   *

We´ll stick with gold and bearingz, fishez!

Photo yesterday from Miralflores (Lima), Peru:

https://drive.google.com/file/d/0BxnHmH-02CQIU3E4ZmN0UVJVMExoX281elBkR0RCS1c1RDB3/view?usp=sharin

[tyz]

I still can not believe that one little guy like him can trigger such a flash crash. Really scary! 

[TheButterZone]

If someone could go ahead and do the inverse of what this guy did, but on bitcoin markets, that would be great...

[TPTB_need_war]

OROBTC, you are naive Marxist simpleton. Please learn to read. I doubt you will ever understand. Sigh. I give up. 

While we already noted that the CFTC and the DOJ have gone full scapegoat retard, by blaming the entire flash crash on one solitary trader (operating out of the UK no less), which means that Waddell & Reed should now sue the SEC for hundreds of millions in lost fees and defamation, it is worth re-emphasizing the hubris and the audacity that these "regulators" have, to assume that sophisticated market participants are truly dumb enough to believe any of this is just shocking.

In any event, going with the bullshit story concocted by the confused brains at the CFTC (whose former head when all this happened, is now being groomed by Hillary Clinton to be America's next Treasury Secretary), and for all those who wish to follow in the "rogue" ES trader's footsteps, here is how Navinder Singh Sarao singlehandedly crashed the entire market, leading to the single biggest loss in market capitalization in history.

So now that you know how to crash the entire stock market single handedly, please do. Because this is not a "market."

[OROBTC]

...

Indeed, TPTB, this guy may just be a fall-guy or merely one of many involved.  Not all of the facts are in, still.  And they certainly were not all in when I started this thread.  It has taken "just" five years after all under our pal Obama´s administration just to get this far.

FYI, my maternal grandmother went to Poland right after WWII and was fucked over by the Commies when she was there to do good with the Red Cross.  MARXISM, in all its forms, is anathema in our family.  Please pick another word, thanks.  

I myself saw what Communism was like in its full glory in Poland and East Germany (in 1984).

But, yeah, I feel pretty much like you do re Hillary´s likely picks to "guide" our financial system.

[elvizzzzzzz]

"to assume that sophisticated market participants are truly dumb enough to believe any of this is just shocking."

That is the stunner. After everything they have seen, the dumb money still wants to believe ...

ADD : I'll try to explain it like this. Back in the day, I played Quake with a 200msec lag.
Soooo ... If I'm running down a corridor and want to get through a door I leap at the wall
about ten feet before I reach the opening, and if I'm shooting, I lead the target by about
the same ten feet.
Every once in a while I'd get killed without ever seeing the shooter. That happened most
often when the opponent was playing on the server, with a time lag of 50msec. Put simply,
there was no contest when that happened.

Today, when High Frequency Trading, the big players are co-located. That means the connection
is on about 20 metres of cable at close to 299,792,458 metres per second - round figures would be
about 100 nanoseconds from the exchange to your code. Big money is paid for that speed advantage.

Thus when the CFTC alleges that "spoofing" took place, my immediate thought is that the CFTC
has no clue. If you live in London and trade in New York, "spoofing" will get you killed. That is the
one thing you want to avoid at all costs. And trading from your mom's basement? What? 

There may have been something else going on, the alleged perp may even have found some way of
time-travelling, but what happened almost certainly isn't what the CFTC alleges. 

[TPTB_need_war]

Indeed, TPTB, this guy may just be a fall-guy or merely one of many involved.  Not all of the facts are in, still.  And they certainly were not all in when I started this thread.  It has taken "just" five years after all under our pal Obama´s administration just to get this far.

OROBTC, the problem is that you trust anything that is written by government. That you believe anything from a government larger than your local white wooden church that doubles as a makeshit townhall, makes you a Marxist/Statist sheeople. The facts will never come out from the government. Don't you understand everything is propaganda?

Turn off the news and turn off the TV.

It is all lies. All of it. Will never be fixed. Never. The solution is only to be found in the free market as I am explaining in the Economic Devastation thread.

[OROBTC]

...

"News", senor?  Que es eso? 

I am here in Peru where the only news is about Peru.

Except stinking CNN International, which I don't watch.

Pura mierda, pues...

[elvizzzzzzz]

"I am here in Peru where the only news is about Peru."  ... clearly _not_ the only news ...
but just to bring things into focus, a view on what has happened ...


http://business.financialpost.com/2012/09/20/flash-crash-or-a-turning-point-for-oil-prices/
“In their report on the 2010 equity market crash, the SEC and CFTC staff found that “against a backdrop of unusually high volatility and thinning liquidity, a large fundamental trader (a mutual fund complex) initiated a sell programme to sell a total of 75,000 E-mini contracts (valued at approximately $4.1 billion) as a hedge to an existing equity position”.

The CFTC knows that somebody did something stupid with $4.1Bn ... and others profited.

In the course of the investigation TPTB realise that one of the little people managed to
make some money, and figured that he had to be doing something illegal because the game
is rigged in their favour with secret order types to allow them to front-run and to queue-jump.
(read Scott Patterson's? book)

At this point there are two theories :
a) That TPTB want to avoid exposing their wrongdoing and their algorithms in court hence
bringing a case against any US players is impractical; and
b) TPTB want the code that generated the profit for themselves

So, just before the SoL runs out, they pick the Armstrong option. (Go see "The Forecaster")
Arrest (and extradite) on very doubtful (later no) grounds, demand the source code, and hold
in jail for contempt of court for as long as the need exists. Eventually offer a choice of
pleading guilty or n years in jail, where n > expected life.

What could go wrong? It looks like things have not worked out as planned.
The source code may not have been published immediately, but the inner workings and the
methodology are known. So there is likely to be a small army working on implementing
and improving the code right now, and Asia excels in industrial scale reproduction ...

And contrary to the published propaganda the system is no more secure. TPTB would love
you to believe that the avalanche was due to one rogue snowflake, ridiculous though that
idea is. Maybe the bulldozers driven by the big banks? Hardly. How about the Federal
Reserve Bank that built up the mountain using the US Taxpayer's money? They really do not
want attention drawn to that ... 

For recent details ...
http://www.zerohedge.com/news/2015-04-24/why-nav-sarao-had-be-destroyed-he-found-way-beat-hfts-their-own-game

[TPTB_need_war]

http://armstrongeconomics.com/2015/04/28/flash-crash-prosecution/

[Bitcoiner2015]

...

It took long enough, but they finally arrested the guy today in London who was responsable for the May 2010 Flash Crash on the US stock exchanges.  Many of you may recall that day when the Dow was down 900 points at one time that afternoon.  I sure as Hell do.

I had left my office to go do some recreational shooting at a nearby range, the Dow was down some 300 points when I left.  I called my brother just before walking in to fire off 100 rounds or so.  He told me the Dow was down 900 points...  WTF!!!  -600 points in 30 minutes!  When I later left the range, much of the market had recovered.  But still, a LOT of money and confidence was lost in our markets that day.

Throw the book at the SOB.  Read all about it:

http://www.zerohedge.com/news/2015-04-21/full-scapegoat-retard-trader-arrested-2010-flash-crash

http://www.zerohedge.com/news/2015-04-21/step-step-guide-how-crash-entire-market

*   *   *

This is a cautionary tale about "things digital".  While I am a happy hodler of BTC, I have always recommended owning physical gold (silver and/or platinum OK too).  While there IS manipulation of the "paper gold" markets, owning the metals and holding them yourselves (well hidden), gold will withstand these kinds of Flash Crashes.

Note that trading BTC on exchanges (etc.) might be vulnerable to these kinds of attacks.  Buy & Hold BTC is what I do...



EDIT:

1)  Waddell & Reed are apparently innocent, where do they go to get their reputation back?

2)  Jon Corzine is apparently NOT innocent!  When does he get put on trial?

People flash crash Bitcoin all the time and that seems to be cheered on by lots of the bears on the boards, how come if you do it to a stock market it is illegal?

[TPTB_need_war]

People flash crash Bitcoin all the time and that seems to be cheered on by lots of the bears on the boards, how come if you do it to a stock market it is illegal?

Because he is a Marxist fool who wants to hand the keys to a monopoly on force to a collective enforcement authority.

Then he wonders why the result he gets is corrupted.

It is like those in Hawaii who built their homes next to an active volcano and then wonder why they have lava in the living room.

Sheeople are so amusing like a dog who attacks his own tail and doesn't realize it.

[OROBTC]

...

I just saw Armstrong's latest blog piece on this (April 28), and it indeed looks like the Flash Crash did NOT involve just the Brit, who apparently is being treated horribly by the UK authorities.  A scapegoat?

I still want to see this matter investigated further.

ESPECIALLY if Jon Corzine, "The Biggest P.O.S. on Planet Earth" is a part of this.

Historically it is also true that violent market movements can happen very quickly, for a variety of reasons.  And I do agree that .gov intervention in events like this usually makes things worse.  I am just going to guess that the "Flash" part of this Crash is because computer & their algorithms can do things so fast.

And, yes, I have to agree with a philosophical points made by TPTB on the Economic Devastation thread.  Bad things happen, it is the nature of life.  Coddling of society and encouraging reckless behavior by our government merely encourage further deterioration of our society.

However, I do not have any answers as to what to do about manipulation in any markets.