The British day trader accused of contributing to the 2010 flash crash enlisted a computer programmer to help him work out a system to manipulate stock prices, e-mailing pleas for help perfecting his 'spoofing' efforts, U.S. prosecutors said in an indictment.
'I need to know whether you can do what I need, because at the moment I’m getting hit on my spoofs all the time and it’s costing me a lot of money', Navinder Singh Sarao wrote in a February 2009 e-mail to a programmer he’d tapped to build trading software, according to the grand jury indictment filed Thursday in federal court in Chicago.
Bloomberg News reports that those new details expand the government’s explanation of how the 36-year-old day trader built a system for placing orders he would enter and then pull off the market before they were executed.
Prosecutors allege Sarao entered one in five sell orders during the May 6, 2010, frenzy known as the flash crash, when almost $1tril was wiped from the value of U.S. equities.
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