Plunge Blamed On A Large Order Of E-minis

A report may be released tomorrow by the Securities and Exchange Commission and Commodity Futures Trading Commission alleges that one trade brought down the market in a mini-crash on May 6th.

A single trade by Waddell & Reed Financial Inc (WDR.N) helped spark the cascade of market selling on May 6, said a source familiar with regulators’ report on the so-called flash crash.

Waddell, which sold a large order of e-mini futures contracts during the plunge, will not be named in the report, according to the source, who requested anonymity because report has not been made public.

Something smells! If you are telling me that our markets are that vulnerable what’s to prevent anyone from doing it again and profit with huge short positions? I don’t buy it!

Tags: Mini Crash May 6th SEC Waddell & Reed Financial

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