Smarter BusinessUncategorized

Erik Schatzker, Waddell & Reed #flashcrash

A guy by the name of Erik Schatzker (Bloomberg Anchor) put out this tweet earlier: Breaking on Bloomberg: SEC fingers Waddell & Reed trading in #flashcrash. Official report won’t ID firm. $WDR

Makes it sound like Waddell & Reed in Kansas City caused the Flash Crash.  The real story is here:

http://www.bloomberg.com/news/2010-09-30/waddell-reed-e-mini-trades-are-said-to-have-helped-trigger-may-6-crash.html?cmpid=yhoo

Waddell & Reed was only a questioned participant, not the cause, according to the Bloomberg story.  Erik needs to get the story a little more accurate.  He was right, they won’t be in the report but “fingered” is not correct in making it sound as if Waddell & Reed was the sole cause.