Reuters names e-mini S&P ‘flash crash’ seller

[mike oxbig]

Quote from Ghost of Cutten:

Isn't it illegal to divulge client identity?

The public has a right to know everything.
Well, everything except where barry obama was born.

 

[startraitor]

Position limits are 100,000 es and 20,000 sp contracts or any combination of the two, ie. 10,000 sp and 50,000 es. That is why I find it hard to believe that one $30 billion fund uses 3/4 of it's poisiton limit as a "hedge" and one they were placing all at once at that.

Quote from Q12:

Waddell & Reed runs a very successful mutual fund called (UNASX). It's done a great job over the years of protecting on the downside, while still participating on the upside. Clearly a more actively managed fund that maintains the ability to hedge its market exposure from time to time.

The fund has close to $30 billion in it, between it and the "clone" funds that it runs. So, if the assumption is that they wanted to reduce some of that expsoure, and they were willing to risk 50 handles on the spooz, you're looking at $187.5 million on $30 billion. What's that, not even 1% of total funds assets??

Just goes to show you if they really wanted to hedge up to a more reasonable extent (and who knows what their position was coming in), they could have tried to sell 750,000 e-mini's instead of 75,000. I wonder what that would have done to the market?

 

[Cdntrader]

Quote from startraitor:

Position limits are 100,000 es and 20,000 sp contracts or any combination of the two, ie. 10,000 sp and 50,000 es. That is why I find it hard to believe that one $30 billion fund uses 3/4 of it's poisiton limit as a "hedge" and one they were placing all at once at that.

You are overestimating the intelligence of managed $ operators.

 

[RiceRocket]

Bullshit!!! 75k in the eminis, haha, what a crock of shit. What about the SP volume? The ES can gobble up 75k contracts like a whale eats sardines. The real reason for the meltdown has to do with GS, JPM, MS, and BAC. They make the market, if they step off and withdraw liquidity, the market can go to zero. Remember the first time TARP was voted down. The market fell 500 points within 30 seconds. It was just like this meltdown.

Right before this meltdown began, UBS downgraded GS. At the same time congress was about to vote on auditing the fed. Guess what, congress swiftly voted against it. Then the SEC settled with GS for 5 billion.

75k ES contracts caused the meltdown, hahahah, take a flying fuck.

 

[fkbsuhites]

I think you have the correct analysis. And I also think nothing will be done.

Amuses me to no end when supposed traders postulate the markets are "free and efficient" or these markets have no manipulation because they are after all supposed "pristine venues operated by men of good faith". Ah the stupid. Gotta love 'em.



http://www.bloomberg.com/apps/news?pid=20601010&sid=a6cZyS0VsZws

After 100 shares of Procter & Gamble Co. crossed at $56.32 on the NYSE just before 2:46 p.m. on May 6, no trades in the largest U.S. consumer products maker occurred on the Big Board until almost 2:48 p.m., data compiled by Bloomberg show. The stock fell as low as $39.37 as 100-share lots cascaded through electronic exchanges such as Kansas City-based Bats, Nasdaq OMX Group Inc. in New York and Jersey City, New Jersey-based National Stock Exchange.

Quote from ASusilovic:

I can only repeat my question that I have raised already dozen of times, because not the SEC, CFTC and other regulator are not raising it and the are not raising it for A REASON ( emphasis !!!!! ) :

WHERE HAVE BEEN SMART ASS, "CLASSIC" MARKET MAKERS LIKE GOLDMAN, J.P. MORGAN, BOFA/MERRILL, CITI, MORGAN STANLEY, UBS, CREDIT SUISSE, DEUTSCHE SECURITIES, SOCIETE GENERALE AND OTHER during this melt down ?

I can understand that HFT cowards have switched off their machines, because this market manipulators and professional front runners do what they always do when there is turmoil : sh.t their pants...

But hey, can you imagine GOLDMAN not running an ALGO jumping in at a discount of 20 % for Procter & Gamble ?

J.P. Morgan not bidding for Accenture at let's say 30 % discount - not to say a penny ?

THE OBVIOUS CONCLUSION IS THAT ON THURSDAY NOT ONLY THE HFT BOUTIQUES SWITCHED OFF THEIR MACHINES, BUT THE LARGE PLAYERS TOO.

Coincidence ?????

NEVER EVER ! AND THAT'S THE SCANDAL AND THE BRAZENNESS THAT THE SEC HAS TO PROBE AND NOT WHETHER WADDELL AND REED HAS SOLD 75.000 Mini S&P contracts to hedge bona fide their positions !

Do yourself a favor and write Robert W. Cook, director markets and supervision and demand an answer where th fu..ing classic market makers have been THURSDAY 6 th of May 2010 :

'CookR@sec.gov'


Have fun !

 

[ammo]

waddel and reed,martha stewart of 2010

 

[TraDaToR]

Quote from RiceRocket:

The ES can gobble up 75k contracts like a whale eats sardines.

You're right if you mean that it would be done with difficulty. Whales only eat plankton, sardines are hard to digest for them.

 

[trackstar]

It has to do with the regulation that was passed the night before. I'll post it later today.

 

[nkhoi]

Quote from RiceRocket:

.. At the same time congress was about to vote on auditing the fed. Guess what, congress swiftly voted against it....

Money makes the world go round, congress learned a lesson.

 

[QuikrRetirement]

Quote from Pekelo:

"Waddell's response makes sense to Michael Covel, author of the bestselling books Trends Following and The Complete Turtle Trader...

Covel says a more likely scenario is that one large trade could have triggered a mad sell-off that swept the markets down 10%.

Why are you quoting this person?