Most Clicked FIA SmartBrief Stories


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

FIA SmartBrief | 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 (04/22) Reuters (04/22)


2. U.K. trader accused of helping cause 2010 "flash crash"

FIA SmartBrief | Apr 22, 2015

U.S. authorities have charged Navinder Singh Sarao, a U.K. futures trader, in connection with the "flash crash" of 2010. Sarao is accused of market manipulation that earned him $40 million from 2010 to 2014. The Department of Justice and the Commodity Futures Trading Commission say Sarao used illegal "spoofing" and "layering" strategies. Bloomberg (04/21) Deutsche Welle (Germany) (04/21) Wall Street Journal (tiered subscription model), The (04/21) Financial Times (tiered subscription model) (04/22)


3. U.K. trader says he used "intuition" and quick reflexes

FIA SmartBrief | Apr 24, 2015

Navinder Sarao, the trader accused of manipulating the U.S. futures market in the 2010 "flash crash," told U.K. regulators he traded "very very fast" because he has quick reflexes, according to e-mails released by the Commodity Futures Trading Commission. He also referred to himself as an "old-school" trader relying on "intuition." More details about Sarao's life are emerging. He is said to be a millionaire who zealously concealed his wealth. Wall Street Journal (tiered subscription model), The (04/23) Telegraph (London) (tiered subscription model), The (04/23)


4. Professor credited for unmasking "flash crash" suspect

FIA SmartBrief | Apr 24, 2015

Terrence Hendershott, a professor at University of California, is being credited for unmasking Navinder Singh Sarao, the British trader accused of contributing to the 2010 "flash crash." The Commodity Futures Trading Commission hired Hendershott, who sorted though trading data from nearly 400 days to document fake orders, according to an affidavit. Bloomberg (04/23)


5. Trader's arrest raises questions about regulatory efforts

FIA SmartBrief | Apr 23, 2015

The arrest of U.K.-based trader Navinder Singh Sarao in connection with the 2010 "flash crash" is highlighting fundamental lapses in market oversight. The arrest, which took five years, also points to the difficulties regulators face in trying to detect future issues. New York Times (tiered subscription model), The (04/22) Reuters (04/22) Financial Times (tiered subscription model) (04/22) Bloomberg (04/22)


6. U.S. options market making reportedly not in UBS' future

FIA SmartBrief | Apr 20, 2015

UBS notified clients and exchanges that it is quitting its less-profitable automated U.S. options market-making activities, sources say. "Being a liquidity provider in the options market has become more difficult as market makers are stressed with greater regulatory responsibilities and a fragmented exchange structure," said Ed Boyle, CEO of BOX Options Market. MarketWatch (04/17)


7. Commentary: Arrest of "flash crash" trader prompts questions

FIA SmartBrief | Apr 22, 2015

Allegations against a U.K. trader accused of helping cause the May 2010 "flash crash" were simple enough, yet it took authorities five years to make an arrest, Matt Levine writes. "If regulators think that [Navinder Singh] Sarao's behavior on May 6, 2010, caused the flash crash, and if they think he continued that behavior for much of the subsequent five years, and if that behavior was screamingly obvious, maybe they should have stopped him a little earlier?" Levin writes. Bloomberg View (04/21)


8. Volcker proposes "simpler, clearer" regulatory system

FIA SmartBrief | Apr 21, 2015

Former Federal Reserve Chairman Paul Volcker has proposed a reorganized regulatory system that would place the central bank at the lead, eliminate the Office of the Comptroller of the Currency and combine the Commodity Futures Trading Commission with the Securities and Exchange Commission. The system would establish a "simpler, clearer, more adaptive and more resilient regime," according to the Volcker Alliance. Bloomberg (04/20) Reuters (04/20) Hill, The (04/20) Financial Times (tiered subscription model) (04/20)


9. CME paper compares costs of futures and ETFs

FIA SmartBrief | Apr 21, 2015

A CME Group white paper looks at the total costs of holding futures and exchange-traded funds over three months or less and over more than three months. In seven of eight scenarios, futures were found to be less expensive than ETFs. "One of the key findings of the paper was that for short investors, leveraged investors and non-U.S. investors, futures are hands-down the better option for getting index exposure in the U.S.," said Tim McCourt of CME Group. Hedgeweek (London) (04/20)


10. Managed futures funds draw investors

FIA SmartBrief | Apr 21, 2015

Investors who move in groups seeking successful investment strategies are doing the same with managed futures funds, which are increasingly attractive amid shifts in currency markets and falling oil prices. Financial Times (tiered subscription model) (04/20)




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