Today Reuters reported that Waddell & Reed were the culprits behind last Thursday's wild market sell off . . . well sort of. Seems the firm dumped a bunch of e-mini's around that time as part of a hedge, but let's face it the action on May 6 was caused by more than one big seller.
In my humble opinion, with so much market making coming in electronic form, its simply to easy to turn off the switch and get out of the way. While I am not certain that the human factor, i.e. the specialist model, is the solution in the ever changing technological world, the fact that it is so easy to run away from fast markets truly is a concern. I've got it! Let the government find a solution, they always get it right.