The May 6 Wall Street "Flash Crash" that saw the Dow Jones index dive 700 points within minutes was sparked by a computer algorithm, according to a report by US watchdogs published Friday. The joint report by the Securities and Exchange Commission and the US Commodity Futures Trading Commission fell short of naming "the single trader" that used an algorithm to sell 75,000 stocks worth 4.1 billion dollars extremely rapidly.
The large trader, widely reported to be Waddell & Reed Financial, initiated a sell program to offset the risks of an existing equity position, the report said.