Official Flash Crash Report Questioned In New Study

Mark Melin

Published onJune 12, 2014

Updated on May 13, 2021

A new report authored by high frequency trading critic Eric Hunsader, founder of software firm Nanex, makes a key statement about the flash crash of 2010 that has been whispered in certain market making and algorithmic trading circles: HFT was to blame in the May 6, 2010 flash crash, the conclusions of which differ from official regulatory reports.

Waddell & Reed selling during the flash crash

This new study considers primarily volume and price data and shows that Waddell & Reed Financial, Inc. (NYSE:WDR) selling during the flash crash much more passive while HFT traders were more active than previously thought. The report shows there were many...

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Mark Melin

Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.

Official Flash Crash Report Questioned In New Study

Waddell & Reed selling during the flash crash

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