'Flash crash' trader's alleged fraud a common market occurrence

April 22, 2015 11:13 PM

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'Flash crash' trader's alleged fraud a common market occurrence

NEW YORK (Reuters) - The market manipulation case against the British day trader U.S. authorities say helped spur the May 2010 "flash crash" may be the most high-profile to date, but the type of activity he is accused of is actually quite common, market participants say.

Navinder Singh Sarao was charged on Tuesday with allegedly using a computer trading program to generate large sell orders that pushed down prices. He then canceled those trades and bought the contracts at the lower prices, reaping a roughly $40 million profit on his trading, U.S. authorities said.

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