Rumor: Major Trading Firm Caused The Crash

According to ForexLive, a big error at a major trading firm caused today’s market crash.

ForexLive:

“Major US bank had an order to sell $15 mln of S&P e-mini contracts. Accidentally sold $15 bln…”

Update:

CNBC is now reporting that a trader entered a “b” for billion instead of an “m” for million in a trade possibly involving Procter & Gamble (PG). The Dow plunged nearly 1,000 points before paring those losses.

“Sources tell CNBC the firm in question that handled the erroneous trade is Citigroup (C). The bank said it has no evidence of a bad trade but is investigating the situation.”

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