Michael Potts comments in Times article on Navinder Sarao prosecutionApr 30, 2015
Michael Potts is quoted today in an article in The Times on the arrest of the alleged “Flash crash” day trader Navinder Sarao last week. Sarao is accused by US prosecutors of wire fraud, commodities manipulation and ‘spoofing’.
The Times reports that the case has opened the eyes of many people to the world of high-frequency trading and the vulnerability of financial markets to technological manipulation. Michael notes that, against a background of the Libor and Forex scandals the authorities have shifted their focus away from insider trading and are now much more interested in collecting the scalps of people who undermine the fair operation of markets.
As to the possible extradition battle looming, he suggests: “It is very difficult to resist the US. He might be better advised to go to the US voluntarily and focus on fighting the charges by hiring very good, Department of Justice-experienced lawyers to contest the accusations. It might end up as a battle of the experts.”
The full article is available ot subscribers here: http://www.thetimes.co.uk/tto/law/article4426253.ece