By Josh Beckerman
CME Group Inc,. said Wednesday that it concluded, along with
regulators, in the aftermath of the May 2010 "flash crash" that the
1,000-point swing in the Dow Jones Industrial Average wasn't caused
by the futures market.
However, the exchange operator said if new information has come
to light, it looks forward to discussing it with the Commodity
Futures Trading Commission and supports the agency's actions to
prosecute those who attempt to engage in fraud.
The exchange operator's comments come a day after U.K.-based
trader Navinder Singh Sarao was arrested in connection with
allegations from U.S. authorities that he manipulated financial
markets and contributed to a dramatic, swift fall in the Dow Jones
Industrial Average on May 6, 2010, that came to be known as the
flash crash.
The Justice Department complaint said Mr. Sarao engaged in
conduct that contributed to "an extreme order book imbalance" in
the E-mini S&P market. Mr. Sarao placed orders representing
approximately $170 million to more than $200 million of "persistent
downward pressure" on the price.
CME said it is prohibited by law from releasing information
about any individual's trading behavior, including Mr. Sarao's, and
is unable to comment further at this time.
Write to Josh Beckerman at josh.beckerman@wsj.com
Access Investor Kit for CME Group, Inc.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US12572Q1058
Subscribe to WSJ: http://online.wsj.com?mod=djnwires