Dow Jones Industrial Average: a criminal investigation of the collapse is completed

Record drop of Dow Jones Industrial Average: the names of the perpetrators of the tragedy

In brief: Dow Jones Industrial Average lost nearly 1,000 points on May 6, investigation of the incident will end soon - inform the inspectors.

May 6 – Dow Jones Industrial Average had repeated black Thursday. Then, many investors said goodbye forever to the market, and bears get rich. Stock market U.S. became the laughingstock of the world, trading in Dow Jones Industrial Average became the most unsuccessful in history. In an unprecedented investigation into the collapse of U.S. indexes, including Dow Jones and the industrialization that occurred within minutes in the course of trading on May 6, there were specific names. Important regulators caught trading actions of the management company from Kansas Waddell & Reed Financial Inc. market futures E-mini S & P 500, which coincided with the strongest intraday drop in stock prices.

Regulators have not ruled out selling the company 75 thousand contracts E-mini for a 20-minute interval of the trading session could cause lightning incidence indices. E-mini futures tied to the value of the index of “large market” Standard & Poor’s 500. They are traded on the electronic platform of the Chicago Stock Exchange CME. Waddell & Reed has released a special statement in connection with speculation about her involvement in the crash. “On May 6, as in many other trading days, the company has performed several trading strategies, including trade in futures contracts on indexes within the normal management of our flexible investment portfolios,” – said Waddell & Reed, adding that he has used futures to hedge risks. According to Waddell & Reed, at the same time on the market E-mini committed transaction has about 250 players. The Company believes that it could provoke a collapse of their actions the total market shares. Moreover, market activity on May 6 negatively affected the very Waddell & Reed”. Recall the trading day on May 6 on U.S. stock exchanges went down in history as one of the most chaotic days for financial markets. Bidding started at a relatively small minus, nothing foreshadowed dramatic changes. However, according to a report of regulators, about 14:45 in time New York has started a massive, anomalous, unexplained sale, during which the Dow Jones index fell by almost 1000 points, or 9%. Less than half an hour the American stock market “has fallen in price on $ 1 trillion to $ True, then the Dow has won back more than half the losses but still closed in a respectable minus – on 3,2%. The next day, collapsed European and Asian exchanges. Suspicion fell on a technical malfunction in the electronic trading systems or the erroneous sell order, exhibited by some of the major players. In this case it just came on the market index futures E-mini S & P 500. Some analysts criticized the assaulted by a high-speed algorithmic trading, which in recent years, with the development of computer technology, was filling up on highly liquid financial markets. According to regulators, computer programs, at least accelerated the fall of the indices. On May 11 head of the Securities and Exchange Commission (SEC), Mary Shapiro said at a hearing in Congress that regulators have not yet been able to establish the cause of the collapse of the market.

Ukrainian Globalist
2010-05-16 08:40, Economics.

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