On April 21, 2015, the U.S. Department of Justice announced that it would press criminal charges against Mr. Navinder Singh Sarao, a 36-year-old small-time British day-trader. He is being blamed for nothing less than causing the “Flash Crash” of May 6, 2010, the second largest point swing (1010.14 points) and the biggest one-day point decline (998.5 points) in the history of the Dow Jones Industrial Average. This shocking revelation is just the most recent turn in a surreal story that exposes the technical inadequacy of present-day market regulatory agencies.
A bit of history
Following that infamous day, observers were quick to
Continue reading Lessons from the “Flash Crash” regulatory fiasco