Berkeley’s HFT Expert Buttresses Case Against U.K. Trader
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The sleuth who pieced together Navinder Singh Sarao’s pattern of spoofing isn’t an FBI agent or regulator. He’s an academic whose research has taken the view that high-frequency trading is good for markets.
When the Commodity Futures Trading Commission needed an expert to sort through Sarao’s activity, it turned to Terrence Hendershott, a University of California, Berkeley, professor. Hendershott pored over almost 400 days of trading data, documenting Sarao’s practice of using fake orders to move prices in a way that benefited him.