It wasn’t our fault.
That’s the official word from the CME Group, parent operator of the exchange where Navinder Singh Sarao, the high-frequency trader who stands accused of causing all or part of the May 2010 flash crash, executed his trades. The company made the following statement as there is growing sentiment among market participants that the exchange did little or nothing to bring legal or other action against Sarao immediately following the market event of May 2010.
“Nothing is more important to CME Group than the integrity of our marketplace. Following the Flash Crash on May 6, 2010, together with other regulators, we did a thorough analysis of all activity in our markets during the Flash Crash, and concluded – along with regulators – that the Flash Crash was not caused by the futures market. If new information has come to light, we look forward to reviewing it with the Commission. We fully support the CFTC’s actions to prosecute those who attempt to engage in fraud or manipulation.”
Also, an perhaps most importantly, the exchange operator concluded its remarks by saying it is prohibited by law from releasing information about any individual’s trading behavior,” such as Sarao’s.
“So we are unable to comment further at this time,” the press statement ended.
CME operates options and futures exchanges as well as derivatives exchanges in Chicago, and New York City, as well as online trading platforms.