loosecannon
Senior Member
- May 7, 2007
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One large trader led to May 6 stock market plunge
By DANIEL WAGNER and MARCY GORDON (AP) 36 minutes ago
WASHINGTON A trading firm's use of a computer sell order triggered the May 6 market plunge, which sent the Dow Jones industrial average dropping nearly 1,000 points in less than a half-hour.
A report issued Friday by the Securities and Exchange Commission and the Commodity Futures Trading Commission determined the so-called "flash crash" was caused when the trading firm executed a computerized selling program in an already stressed market.
The firm's trade, worth $4.1 billion, led to a chain of events the ended with market players swiftly pulling their money from stock market, the report said.
The report does not name the trading firm. But only one trade that day fit the description in the report. The firm Waddell & Reed, based in Overland Park, Kan., has acknowledged making such a trade that day.
economic weapons of mass destruction?
The Associated Press: One large trader led to May 6 stock market plunge