'Flash crash' trader extradition hearing starts

Navinder Sarao leaving Westminster Magistrates Court on 14 August Image copyright Reuters
Image caption Navinder Sarao accused of using software to "spoof" markets

A hearing into whether Navinder Sarao, the so-called "flash crash" day trader, can be extradited to the US has begun.

Mr Sarao, who traded from his parents' home in Hounslow, west London, is accused of market manipulation that caused a 1,000-point fall on the US Dow Jones index in 2010.

US prosecutors allege he made about $875,000 (£600,000) from the move.

He faces 22 charges in the US, including fraud charges, all of which he denies.

The charges include "spoofing" - the practice of buying or selling with the intent to cancel the transaction before execution.

He was arrested in April after being charged by the US Justice Department.

After spending four months in custody in the UK, he was released on bail last year.

The "flash crash" on 6 May 2010 sent the Dow Jones Industrial Average briefly plunging by more than 1,000 points before recovering.

Mr Sarao, 37, is accused of using software to "spoof" markets by generating large sell orders that pushed down prices.

He then cancelled those trades and bought the contracts at the lower prices US authorities allege.

They claim he made roughly £27m in profit over five years from illegal trades.

Mr Sarao has denied doing anything wrong and previously told the Westminster court in May he was simply "being good at my job".

The hearing, at Westminster Magistrates' Court, continues on Friday.

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