Waddell & Reed says it didn’t cause flash crash

Posted May 17, 2010 at 4:45 p.m.

Dow Jones Newswires | Midwestern money manager Waddell & Reed Financial Inc. said
Monday that it did not cause the so-called flash crash of May 6, which
caused the Dow Jones Industrial Average to plunge nearly 1,000 points
before recovering somewhat, Reuters reports Monday. “We did what our
fund shareholders rightly would expect of us,” the company said in a
letter to its financial advisers, according to the Reuters report.
“There is no evidence to suggest that our trades disrupted the market on
May 6.”

Last week, The Wall Street Journal reported that Waddell was identified
as the trader that sold a big quantity of futures contracts during the
market plunge.

Read more about the topics in this post: , ,

Comments are closed.