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REPORT: Accused Flash Crash trader Nav Sarao is going to plead guilty

Portia Crowe   

REPORT: Accused Flash Crash trader Nav Sarao is going to plead guilty
Stock Market1 min read

Navinder Sarao

REUTERS/Peter Nicholls

Navinder Sarao.

Navinder Singh Sarao, the London day trader accused of causing the 2010 Flash Crash, is going to plead guilty to fraud, Bloomberg reports.

He was accused of "spoofing" the Chicago Mercantile Exchange's futures market - which means making a large bet, waiting for the market to react to it, and then canceling the trade and betting against other traders' reactions.

Prosecutors say Sarao sparked a sudden market crash on May 6, 2010 in this way.

He was recently extradited to the US from the UK.

More to come...

Read the full story on Bloomberg»

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