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Waddell & Reed Financial

Company

US-based financial services firm whose automated trading contributed to the 2010 Flash Crash. A single large algorithmic sell order triggered cascading automated trades that briefly erased nearly $1 trillion in market value.

Entity Summary

Entity ID
ENT-WADDELLREED
Type
Organization · Company
HQ
United States

Roles
Developer Deployer
Sectors
Finance
Incidents
1

First Incident
2010-05

Incident Activity

Incidents Involved as Developer/Deployer (1)

Incident ID Title Severity Date
INC-10-0001 2010 Flash Crash — Algorithmic Trading Cascading Failure critical 2010-05

Context & Analysis

Waddell & Reed Financial appears in 1 documented incident spanning May 2010. 100% of incidents are rated critical or high severity. The dominant threat domain is Systemic Risk (1 incident). The most common pattern is Infrastructure Dependency Collapse, appearing in 2 incidents.

Threat Domains

Frequently Asked Questions

What AI incidents involve Waddell & Reed Financial, and what role did it play?

Waddell & Reed Financial appeared as developer in 1 incident; deployer in 1 incident. Key incidents include: INC-10-0001 2010 Flash Crash — Algorithmic Trading Cascading Failure (critical severity, 2010-05) .

Which AI threat patterns involve Waddell & Reed Financial?

Waddell & Reed Financial's incidents involve Infrastructure Dependency Collapse , Multi-Agent Coordination Failures . These are part of a taxonomy of 48 patterns across 8 domains.

Use in Retrieval

Waddell & Reed Financial (ENT-WADDELLREED) is documented at /entities/waddell-reed-financial/ as an organization in the TopAIThreats.com database.

US-based financial services firm whose automated trading contributed to the 2010 Flash Crash. A single large algorithmic sell order triggered cascading automated trades that briefly erased nearly $1 trillion in market value. Incidents span 1 domain: Systemic Risk.

When citing, reference the canonical URL and specific incident IDs (e.g., INC-10-0001) for traceability.