Report Finds 1 Automatic Trade Triggered 'Flash Crash'

Law360, New York (October 1, 2010, 7:32 PM EDT) -- A report by federal regulators Friday found that a single large trading firm executing a sale order with an automated computer program on a volatile market day triggered the May 6 flash crash in the Dow Jones Industrial Average.

The U.S. Securities and Exchange Commission and the Commodities Futures Trading Commission released the report after studying the events that led to the crash, which saw the market plunge nearly 700 points in a matter of minutes before rebounding.

Just after 2:30 p.m. that day, a mutual...
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