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Navinder Sarao, who lives with his parents in a small house near
London's Heathrow Airport, was arrested by British police on a
U.S. extradition warrant in April after being charged with wire
fraud, commodities fraud and market manipulation by the U.S.
Justice Department.
He was freed on bail on Aug. 14 after spending four months in
prison.
On Friday , his defense lawyer James Lewis told Westminster
Magistrates Court he needed more time to obtain expert evidence
about trading and how the market worked to help address the
issue of whether Sarao had made false representations through
his trading activity.
But District Judge Quentin Purdy rejected the application,
saying he did not think expert evidence would be relevant to
what he had to decide - which was not the facts of the case but
rather whether the U.S. charges would also be offences under
English law.
The full extradition hearing remained set for Sept. 25.
The flash crash saw the Dow Jones Industrial Average briefly
plunge more than 1,000 points on May 6, 2010, temporarily wiping
out nearly $1 trillion in market value.
Sarao, 36, is accused of using an automated program to "spoof"
markets by generating large sell orders that pushed down prices.
He then canceled those trades and bought the contracts at the
lower prices, reaping a roughly $40 million profit on his
trading, U.S. authorities allege.
He has denied wrongdoing, telling the Westminster court in May:
"I've not done anything wrong apart from being good at my job."
(Reporting by Estelle Shirbon; editing by Stephen Addison)
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