Norwegian court acquits day traders in algo cracking case

Norwegian court acquits day traders in algo cracking case

A pair of Norwegian day traders who cracked the algorithms of US broker Timber Hill have been cleared of wrongdoing by the Supreme Court, according to local press reports.

Svend Egil Larsen and Peder Veiby received suspended prison sentences and fines in 2010 after being convicted of manipulating the share price of Norwegian stocks through Interactive Broker unit Timber Hill's online platform.

The men successfully appealed, arguing that they did work out how the broker's algorithm would react to certain trades but that this does not amount to market manipulation.

Public prosecutors then appealed the appeal, with the case ending up in Norway's highest court, where the two men secured a judgement three to two in their favour.

The court decided that the men had acted in full transparency and took into consideration expert opinion arguing the moves were accepted practise in the market.

You can read an account of the case from Norway's Dagens Næringsliv here.

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