SEC To Say Flash Crash Caused By Rogue Trade At Waddell

Some leaks are coming from the Securities and Exchange Commissions report on the flash crash, and the report says a single rogue trade from Waddell & Reed Financial, Inc. WDR caused the flash crash according to Reuters. Waddell & Reed will not be named in the report cited the souce, who requested anonymity due to the report not being public yet. Waddell had sold a large order of e-mini futures contracts during the crash, which led to the Dow dropping nearly 700 points in a matter of minutes, before eventually recovering. In order for the report to be released, a majority of the 10 SEC and CFTC commissioners have to approve the report. The SEC and CFTC are the regulatory bodies who are writing the report.