US Federal Court orders Sarao to pay over USD38m for price manipulation and spoofing

UK resident Navinder Singh Sarao has been ordered to pay a USD25,743,174.52 civil monetary penalty and USD12,871,587.26 in disgorgement for his role in ‘flash crash’ day.

The US District Court for the Northern District of Illinois’ order also permanently prohibits Sarao from further violations of the Commodity Exchange Act (CEA) and CFTC Regulations, as charged, and imposes permanent trading and registration bans on him.

The Court’s order arises from a CFTC enforcement action filed against Sarao, along with his company Nav Sarao Futures Limited, charging them with unlawfully manipulating, attempting to manipulate, spoofing, and use of a manipulative device — all with regard to the E-mini S&P 500 near month futures contract hat trades on the Chicago Mercantile Exchange (CME).

The E-mini S&P 500 is a stock market index futures contract based on the Standard & Poor’s 500 Index and is one of the most popular and liquid equity index futures contracts in the world.

Link: US Federal Court orders Sarao to pay over USD38m for price manipulation and spoofing