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New regulations put in place following the 2010 flash crash<ref name="wsj_dec_2015">{{cite web | url=https://www.wsj.com/articles/should-you-fear-the-etf-1449457201 | title=Should You Fear the ETF? ETFs are scaring regulators and investors: Here are the dangers—real and perceived | publisher=Wall Street Journal | date=December 6, 2015 | access-date=December 7, 2015 | author=Weinberg, Ari I.}}</ref> proved to be inadequate to protect investors in the August 24, 2015, flash crash — "when the price of many ETFs appeared to come unhinged from their underlying value"<ref name="wsj_dec_2015" /> — and ETFs were subsequently put under greater scrutiny by regulators and investors.<ref name="wsj_dec_2015" />
On April 21, 2015, nearly five years after the incident, the U.S. Department of Justice laid
The [[Commodity Futures Trading Commission]] (CFTC) investigation concluded that Sarao "was at least significantly responsible for the order imbalances" in the derivatives market which affected stock markets and exacerbated the flash crash.<ref name="Bloomberg_2015">{{citation |work=Bloomberg News |title=How a Mystery Trader with an Algorithm May Have Caused the Flash Crash |url=https://www.bloomberg.com/news/articles/2015-04-22/mystery-trader-armed-with-algorithms-rewrites-flash-crash-story |access-date=April 25, 2015 |first1=Silla |last1=Brush |first2=Tom |last2= Schoenberg |first3=Suzi |last3=Ring |date=April 22, 2015}}</ref> Sarao began his alleged market manipulation in 2009 with commercially available trading software whose code he modified "so he could rapidly place and cancel orders automatically".<ref name="Bloomberg_2015" /> ''Traders Magazine'' journalist, John Bates, argued that blaming a 36-year-old small-time trader who worked from his parents' modest stucco house in suburban west London<ref name="Bloomberg_2015" /> for sparking a trillion-dollar stock market crash is "a little bit like blaming lightning for starting a fire" and that the investigation was lengthened because regulators used "bicycles to try and catch Ferraris". Furthermore, he concluded that by April 2015, traders can still manipulate and impact markets in spite of regulators and banks' new, improved monitoring of automated trade systems.<ref name="Traders_Magazine_2015">{{citation |title=Post Flash Crash, Regulators Still Use Bicycles To Catch Ferraris: Blaming the Flash Crash on a UK man who lives with his parents is like blaming lightning for starting a fire |work=Traders Magazine Online News |date=April 24, 2015 |access-date=April 25, 2014 |first=John |last=Bates |url=http://www.tradersmagazine.com/news/technology/post-flash-crash-regulators-still-use-bicycles-to-catch-ferraris-113762-1.html?ET=tradersmagazine%3Ae4256762%3A1181926a%3A&st=email |archive-url=https://web.archive.org/web/20180125134559/http://www.tradersmagazine.com/news/technology/post-flash-crash-regulators-still-use-bicycles-to-catch-ferraris-113762-1.html?ET=tradersmagazine%3Ae4256762%3A1181926a%3A&st=email |archive-date=January 25, 2018 |url-status=dead }}</ref>
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