Reuters’ Herbert Lash and Jonathan Spicer has found a document that reveals the mystery trade that triggered the market crash last Thursday.
The culprit is Waddell & Reed, a money managing firm.
Waddell sold on May 6 a large order of e-mini contracts during a 20-minute span in which U.S. equity markets plunged, briefly wiping out nearly $1 trillion in market capital, an internal document from CME Group Inc said.
The firm sold 75,000 e-mini contracts at once on Thursday, which CFTC chair Gary Gensler said made up 9 per cent of the volume in e-minis during the sell-off in the U.S. markets.
Sadly we still don’t know who the one trader who made the mistake is, but knowing the firm definitely narrows it down.
Now check out the worst trades of all time –>
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