ETF role in Dow 'flash crash' under scrutiny

Private equity firms scan market for take-privates

- Emma Dunkley
- 26 May 2010

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The report issued by the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) suggests the drop in prices of index-tracking ETFs and E-mini S&P 500 futures, coupled with subsequent sales in individual securities, could have perpetuated the extreme market fluctuations.

The "flash crash", which saw the Dow Jones plummet around 9.2%, occurred between 2.30pm and 3pm New York time on 6 May.

The joint SEC and CFTC report says ETFs accounted for around 70% of the

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