Saturday, May 15, 2010

Waddell Trade Sparked FlashCrash, Gensler Says


Testimony from Commodity Futures Trading Commission chair Gary Gensler suggests that the mystery plunge that vaporized $1 trillion may have started with a Waddell & Reed Financial e-mini trade.

It was a hedging transaction. Guess the rest of the world took the other end after other bigger firms jumped on the selling bandwagon.

Source: Blogging Stocks

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