A Better Theory on the Flash Crash?

In the original telling of the Flash Crash, which many astute critics viewed as poorly documented fiction, an unidentified mutual fund company (later named in press reports as Waddell & Reed) was blamed for setting things off with a massive sell order of Standard & Poor’s 500 E-mini futures. Now along comes the 36-year-old Londoner and high-frequency trader Navinder Singh Sarao. The CFTC and the Justice Department claim Sarao made $40 million from 2009 to this year by programing his trading robots to illegally manipulate the E-mini market. (Barrons)

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