Which British trader faced U.S. charges linked to the 2010 flash crash?

The British trader who faced U.S. charges linked to the 2010 flash crash was Navinder Singh Sarao. U.S. authorities accused the London-based trader of using spoofing and other manipulative orders in E-mini S&P 500 futures.

According to the charges filed in 2015, Sarao allegedly placed large sell orders that he intended to cancel, creating the appearance of heavy selling pressure. The orders were repeatedly modified or canceled, while he allegedly traded in ways designed to benefit from the resulting price movements.

The May 6, 2010, flash crash saw major U.S. stock indexes plunge sharply and then recover within minutes. Investigators identified many contributing factors, including market structure and automated trading. Sarao was described as significantly responsible for order imbalances in the futures market, but he was not the sole explanation for the entire event.

Sarao later pleaded guilty to electronic fraud and spoofing. In 2020, he received one year of home confinement rather than a prison sentence, after cooperating with prosecutors and citing personal and medical circumstances.