Skip to main content

Flash Crash Was Just Kinda Run Of The Mill Day For Shop That Caused The Fuss

  • Author:
  • Updated:
    Original:

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]

Related

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.

Chicago Grand Jury Plays Along, Indicts "Flash Crash Trader"

Such a relief that they keep catching this guy for acting alone and crashing everything all by himself.

Flash Crash Trader To Johnny Law: I'm Sorry... For Being So Dope!

Navinder Sarao is super apologetic that he's apparently way better at spoof trading than all the other people who were doing it.

Evidence Shows Alleged Flash Crash Trader Is A Pretty Bro-y Bro

All I need are some tasty waves, a wicked spoofing algorithm, and I'm fine.