Navinder Sarao

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Flash Crash: A Trading Savant, a Global Manhunt, and the Most Mysterious Market Crash in History by Liam Vaughan

algorithmic trading, backtesting, bank run, barriers to entry, Bernie Madoff, Black Monday: stock market crash in 1987, Black Swan, Bob Geldof, centre right, collapse of Lehman Brothers, data science, Donald Trump, Elliott wave, eurozone crisis, family office, financial engineering, Flash crash, Great Grain Robbery, high net worth, High speed trading, information asymmetry, Jeff Bezos, Kickstarter, land bank, margin call, market design, market microstructure, Market Wizards by Jack D. Schwager, Navinder Sarao, Nick Leeson, offshore financial centre, pattern recognition, Ponzi scheme, proprietary trading, Ralph Nelson Elliott, Reminiscences of a Stock Operator, Ronald Reagan, selling pickaxes during a gold rush, sovereign wealth fund, spectrum auction, Stephen Hawking, the market place, Timothy McVeigh, Tobin tax, tulip mania, yield curve, zero-sum game

persuaded the U.S. government to insert an amendment: “Order Granting Joint Motion for Entry of an Addendum to the Consent Order of Preliminary Injunction,” CFTC v. Navinder Singh Sarao, December 12, 2015. But it was a desperate plea: Navinder Sarao v. USA, Approved Judgment, November 3, 2016. whether he really wanted to be remembered: The 1988 film Rain Man stars Dustin Hoffman as an autistic savant with a photographic memory who is put to work by his brother, played by Tom Cruise, counting cards in a casino. they agreed on a CMP of two times the gains: “Federal Court in Chicago Orders U.K. Resident Navinder Sarao to Pay More than $38 million in Monetary Sanctions for Prince Manipulation and Spoofing,” November 17, 2016 www.cftc.gov.

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When Nav pressed him about “back of the book” again, Hadj told him it was beyond Autotrader’s functionality and he would need to find an external programmer. Sarao’s insistence struck Hadj as odd, but before long TT hired a new engineer in London and it was no longer his problem. He wouldn’t give Navinder Sarao another thought until six years later when he saw him on the evening news. CHAPTER 10 ◼ THE CRASH On Thursday, May 6, 2010, Nav awoke in his upstairs bedroom, got up, and switched on the computer that sat at the end of his single bed. He still kept a desk at CFT, but he preferred to trade from his parents’ home in Hounslow where there were no distractions or prying eyes.

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Around the same time, MacKinnon, Dupont, and Davie incorporated Wind Energy Scotland LLP, the management company, in the UK. Nav handed MacKinnon and Dupont an $800,000 finder’s fee for lining up the deal and agreed to give them a share of his profits once the seed money had been paid back. To celebrate, they went to a bar in London and drank expensive scotch, Nav’s watered down with a coke. Navinder Sarao, business tycoon, was born. CHAPTER 13 ◼ THE DUST SETTLES While Nav mulled what to do with his growing riches, the debate in the United States over high-frequency trading grew louder. CBS’s 60 Minutes aired a segment on the “math wizards” who secretly controlled the market, and scarcely a day passed without reports of another “mini flash crash” involving unexplained blips in stocks like Cisco Systems and the Washington Post Company.

Moneyland: Why Thieves and Crooks Now Rule the World and How to Take It Back by Oliver Bullough

Alan Greenspan, banking crisis, Bernie Madoff, bitcoin, blood diamond, Bretton Woods, Brexit referendum, BRICs, British Empire, capital controls, central bank independence, corporate governance, cryptocurrency, cuban missile crisis, dark matter, diversification, Donald Trump, energy security, failed state, financial engineering, Flash crash, Francis Fukuyama: the end of history, full employment, Global Witness, high net worth, if you see hoof prints, think horses—not zebras, income inequality, joint-stock company, land bank, liberal capitalism, liberal world order, mass immigration, medical malpractice, Navinder Sarao, offshore financial centre, plutocrats, Plutonomy: Buying Luxury, Explaining Global Imbalances, rent-seeking, Richard Feynman, risk tolerance, Sloane Ranger, sovereign wealth fund, Suez crisis 1956, WikiLeaks

This might not be such a problem if the only takers for Nevis’ services were rich Americans keen to hide their wealth from their fellow citizens. However, just as with Warburg’s eurobonds, the island’s peculiar trade draws in crooks and tyrants from all over the world. The evil money always mixes with the naughty money. Name a scam, any scam, as long as it’s complex and international, and it will involve somewhere like Nevis. Navinder Sarao, the British day trader convicted in 2016 for ‘spoofing’ the US markets in the ‘Flash Crash’ of 2010 (when the Dow Jones Industrial Average lost more than 600 points in minutes, at least partly because Sarao sent fake orders to drive down prices, temporarily wiping trillions of dollars off the value of US shares), diverted his profits into two Nevis-registered trusts, one of which he called the NAV Sarao Milking Markets Fund.

Fed Up: An Insider's Take on Why the Federal Reserve Is Bad for America by Danielle Dimartino Booth

Affordable Care Act / Obamacare, Alan Greenspan, asset-backed security, bank run, barriers to entry, Basel III, Bear Stearns, Bernie Sanders, Black Monday: stock market crash in 1987, break the buck, Bretton Woods, business cycle, central bank independence, collateralized debt obligation, corporate raider, creative destruction, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, diversification, Donald Trump, financial deregulation, financial engineering, financial innovation, fixed income, Flash crash, forward guidance, full employment, George Akerlof, Glass-Steagall Act, greed is good, Greenspan put, high net worth, housing crisis, income inequality, index fund, inflation targeting, interest rate swap, invisible hand, John Meriwether, Joseph Schumpeter, junk bonds, liquidity trap, London Whale, Long Term Capital Management, low interest rates, margin call, market bubble, Mexican peso crisis / tequila crisis, money market fund, moral hazard, Myron Scholes, natural language processing, Navinder Sarao, negative equity, new economy, Northern Rock, obamacare, Phillips curve, price stability, proprietary trading, pushing on a string, quantitative easing, regulatory arbitrage, Robert Shiller, Ronald Reagan, selection bias, short selling, side project, Silicon Valley, stock buybacks, tail risk, The Great Moderation, The Wealth of Nations by Adam Smith, too big to fail, trickle-down economics, yield curve

Norton, 2014), 44. Now a household word: The CBOE VIX measures stock market volatility, www.cboe.com/micro/VIX/vixintro.aspx. Demonstrators stormed the Parliament: Dan Bilefsky, “Three Reported Killed in Greek Protests,” New York Times, May 5, 2010. The crash’s trigger: Bernard Goyder, “Navinder Sarao Faces U.S. Extradition,” Wall Street Journal, March 23, 2016. “This guy, for want”: Suzi Ring, John Detrixhe, and Liam Vaughan, “The Alleged Flash-Trading Mastermind Lived with His Parents and Couldn’t Drive,” Bloomberg.com, June 9, 2015, www.bloomberg.com/news/articles/2015-06-09/the-alleged-flash-trading-mastermind-lived-with-his-parents-and-couldn-t-drive.

The Spider Network: The Wild Story of a Math Genius, a Gang of Backstabbing Bankers, and One of the Greatest Scams in Financial History by David Enrich

Bear Stearns, Bernie Sanders, Black Monday: stock market crash in 1987, call centre, centralized clearinghouse, computerized trading, Credit Default Swap, Downton Abbey, eat what you kill, electricity market, Flash crash, Glass-Steagall Act, Goldman Sachs: Vampire Squid, information asymmetry, interest rate derivative, interest rate swap, London Interbank Offered Rate, London Whale, Long Term Capital Management, Michael Milken, Navinder Sarao, Nick Leeson, Northern Rock, Occupy movement, performance metric, profit maximization, proprietary trading, Savings and loan crisis, tulip mania, work culture , zero-sum game

* Hayes would later claim that he simply thought it would be more effective if Hoshino casually approached the London colleagues in person, and that’s why he told him not to put it in writing. * Years later, regulators would still be searching for a convincing explanation for what caused the plunge. American authorities would criminally charge a socially awkward math whiz named Navinder Sarao as a primary culprit. Trading out of his family’s modest London home, Sarao had been using algorithms to simulate bids and offers—a strategy that prosecutors would allege had helped trigger the crash. * No Barclays traders had been arrested. It’s unclear what Celtik was referring to. * The FSA would later tell Wilkinson that his bosses had been lying—the agency had nothing to do with his suspension