Waddell & Reed Financial Inc., the mutual-fund manager based in the heart of Kansas that caters to mom and pop investors, is an unlikely company to be blamed for sending Wall Street into a tailspin on May 6. The company, started 73 years ago by Cameron Reed and Chauncey Waddell, was unloading the futures, known as E-minis, in the course of normal hedging of its holdings, according to the report. The trading may not have prompted a retreat had investors not already been rattled by negative news, including a worsening of the European debt crisis, said the people, who asked not to be identified because the regulators’ report hasn’t been released. Roger Hoadley, a spokesman for the Overland Park-based company, said its traders were “merely trying to manage downside risk in our portfolios.” [Bloomberg]
Accused Flash Crash Trader Keeps It Business Very Casual
Navinder Sarao said no thanks to the notion of donning a suit and tie for his hearing in a London court, opted for a sweatshirt and track pants instead.