Most Clicked CFA Institute Financial NewsBrief Stories

1. U.K. trader faces "flash crash" charges

CFA Institute Financial NewsBrief | Apr 22, 2015

U.S. authorities have charged Navinder Singh Sarao, a U.K. futures trader, for allegedly contributing to the "flash crash" of 2010. Sarao is accused of market manipulation that earned him $40 million from 2010 to 2014. The U.S. Department of Justice and the Commodity Futures Trading Commission say Sarao used illegal "spoofing" and "layering" strategies. Bloomberg (21 Apr.) Deutsche Welle (Germany) (21 Apr.) Wall Street Journal (tiered subscription model), The (21 Apr.) Financial Times (tiered subscription model) (22 Apr.)

2. Professor credited for unmasking "flash crash" trader

CFA Institute Financial NewsBrief | Apr 24, 2015

Terrence Hendershott, a professor at the University of California at Berkeley, is being credited for unmasking Navinder Singh Sarao, a British trader accused of contributing to the 2010 "flash crash." The Commodity Futures Trading Commission hired Hendershott, who sorted though nearly 400 days of trading data to document Sarao's fake orders, according to an affidavit. Meanwhile, details of Sarao's life, including his trading habits, are emerging. Also, CME Group is facing increased scrutiny for allowing Sarao's conduct to continue after detecting it in 2009. Financial Times (tiered subscription model) (23 Apr.) Bloomberg (23 Apr.) Wall Street Journal (tiered subscription model), The (23 Apr.) Telegraph (London) (tiered subscription model), The (23 Apr.)

3. How often do you encounter significant examples of "office politics" that affect your ability to do your job?

CFA Institute Financial NewsBrief | Apr 21, 2015

4. Missed details said to thwart "flash-crash" investigation

CFA Institute Financial NewsBrief | Apr 27, 2015

Investigators took five years to detect manipulation that contributed to the 2010 "flash crash" after overlooking evidence available hours after the wild gyrations in the U.S. futures market, according to a committee that oversaw the inquiry. Investigators failed to look closely into a set of data and missed details on spoofing allegedly pursued by trader Navinder Sarao. Wall Street Journal (tiered subscription model), The (26 Apr.)

5. Brazil's Petrobras says corruption caused $2.1B loss

CFA Institute Financial NewsBrief | Apr 23, 2015

Long-delayed audited financial results of Brazilian state-run oil company Petroleo Brasileiro show a widening scandal involving bribery and money laundering has cost the company $2.1 billion. By releasing the data, the company avoids triggering a provision in bond agreements that requires accelerated repayment. (22 Apr.) Bloomberg (22 Apr.)

6. China reportedly to inject billions into state policy banks

CFA Institute Financial NewsBrief | Apr 21, 2015

China's foreign exchange reserves will be used to recapitalize state-run policy banks, Caixin magazine reported. The People's Bank of China will provide $30 billion to the Export-Import Bank of China and $32 billion to the China Development Bank, sources said. The capital injections will be made indirectly through loans, they said. Bloomberg (20 Apr.) Market News International (20 Apr.)

7. U.K. "flash crash" trader fights extradition to U.S.

CFA Institute Financial NewsBrief | Apr 23, 2015

A day trader with a reputation for making millions while being distant from fellow traders has appeared in London court to contest extradition to the U.S. on charges of fraud and manipulation in connection with the May 2010 "flash crash." Navinder Singh Sarao's supporters are using #freenav on Twitter and say he saw the risk and rewards and took on the trades. Bloomberg (22 Apr.) Reuters (22 Apr.)

8. Deutsche Bank faces $2.5B fine over Libor

CFA Institute Financial NewsBrief | Apr 24, 2015

Deutsche Bank's London unit will plead guilty to wire fraud for manipulating the London Interbank Offered Rate as part of a deal with the U.S. Justice Department, authorities say. Germany's largest bank will pay U.K. and U.S. authorities $2.5 billion, the biggest penalty in a seven-year investigation of benchmark-rate manipulation. The bank must also terminate employees involved. Reuters (23 Apr.) BBC (23 Apr.) Independent (London) (tiered subscription model), The (23 Apr.)

9. Greece running out of time and money

CFA Institute Financial NewsBrief | Apr 27, 2015

Greece is trying to put together enough money collected from local government agencies, cities and other public bodies to make payments due at the end of the month that total more than $1.6 billion. Eurozone finance ministers said the EU won't release any more money for Greece until it complies with the terms of its bailout. Bloomberg (26 Apr.)

10. Asset managers' ability to handle redemption run worries Fed

CFA Institute Financial NewsBrief | Apr 23, 2015

The Federal Reserve is concerned about how the asset-management industry would respond to a run of redemptions because an interest-rate increase is on the horizon. Volatility and decreased liquidity in the bond market are raising the stakes for the central bank to offer plenty of time in signaling intent. Reuters (23 Apr.)