Exclusive: Waddell is mystery trader in market plunge

Exclusive: Waddell is mystery trader in market plunge

www.reuters.com

It's unclear what impact the trading in the e-minis had on stock prices during the plunge, but regulators have scrutinized futures trading because the sharp decline in that market preceded the dive in the broader U.S. equities market.

The CME document shows that during the sell-off and subsequent rally, other active traders in e-minis included Jump Trading, Goldman Sachs Group Inc, Interactive Brokers Group Inc, JPMorgan Chase & Co and Citadel Group.

During the 20-minute period, 842,514 co

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It appears TPTB have found their scapegoat. what's interesting is Waddell & Reed doesn’t seem to be very highly thought of. If you google, you can find out some pretty bad info on them as far as an investing company. I don’t have tons of money invested, but if I did, I probably wouldn’t use them. It’s still hard to believe that these kinds of trades can make the market crash as quickly as it did. Maybe they’ll find more involvement from Goldman, JP Morgan, etc. who were listed as they were obviously also involved in e-mini trading.

Seems like there’s so many new financial terms, one can’t keep up. E-mini’s – whodathunkit!

Peace


www.reuters.com
(visit the link for the full news article)

reply to post by Gutterpus


They're just the new scapegoat since citi didn't stick. They (W&R) already sent an e-mail to all of their employees saying every investment company does the same thing as us, yatta yatta yatta, we do this stuff every day. They concluded by saying that they in no way caused the drop in the market and that they really didn't even contribute to it. Its obvious they are just trying to point the finger somewhere else since citi called BS.

The audit the fed bill was gutted that day and Obama came out and spoke against it after the market dropped. Which is more likely, that the federal reserve caused the drop by directing their people at the NYSE to stop buying which dropped the volume, killing the value of a lot of stocks, or that someone had a "fat finger" problem(original excuse)? Now they are saying trades made every day somehow completely destroyed the dow on may 6th, and not any other day??? Good call, media.