Flash crash trader pleads guilty in Chicago court to two of the 22 charges he faces

 
Oliver Gill
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'Flash Crash' Trader Freed On Bail
Navinder Sarao was extradited from the UK to face the charges in the US (Source: Getty)

The Hound of Hounslow, the trader allegedly at the centre of the 2010 flash crash, has pleaded guilty in a Chicago court to wire fraud and spoofing.

Navinder Sarao hit the headlines after he was accused of crashing American stock markets by placing enormous orders via a trading platform based in his Hounslow bedroom.

Read more: Trader allegedly "engaged" in spoofing on flash crash day

The 37-year-old who has been extradited from the UK after battling against such an order, is facing 22 charges of fraud and market manipulation. In his first appearance in a US court he pleaded guilty to two of the counts and agreed to gave back $12.9m that he had made from the trades.

Sarao is reported to have made $900,000 in one day on 6 May 2010 by spoofing – placing huge trades and then immediately cancelling them – the Dow Jones. His strategy contributed to around $1 trillion being wiped-off the value of US equities temporarily.

It is alleged that Sarao made a total of $40m from trades using the technique between 2009 and 2014.

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