We couldn't have said it better ourselves. From the CME:
Futures and options markets are hedging and risk transfer markets.
The report references a series of bona fide hedging transactions,
totaling 75,000 contracts, entered into by an institutional asset
manager to hedge a portion of the risk in its $75 billion investment
portfolio in response to global economic events and the fundamentally
deteriorating market conditions that day. The 75,000 contracts
represented 1.3% of the total E-Mini volume of 5.7 million contracts on
May 6 and less than 9% of the volume during the time period in which the
orders were executed. The prevailing market sentiment was evident well
before these orders were placed, and the orders, as well as the manner
in which they were entered, were both legitimate and consistent with
market practices. These hedging orders were entered in relatively small
quantities and in a manner designed to dynamically adapt to market
liquidity by participating in a target percentage of 9% of the volume
executed in the market. As a result of the significant volumes traded
in the market, the hedge was completed in approximately twenty minutes,
with more than half of the participant's volume executed as the market
rallied – not as the market declined. Additionally, the aggregate size
of this participant's orders was not known to other market participants.
Additionally, the most precipitous period of market decline in the
E-Mini S&P 500 futures on May 6 occurred during the 3½ minute period
immediately preceding the market bottom that was established at
13:45:28. During that period, the participant hedging its portfolio
represented less than 5% of the total volume of sales in the market.
Now the only question is, when does Waddell and Reed sue Mary Schapiro for slander and defamation, or, if they decide to keep quiet about all these baseless allegations, pehaps some aspiring investigative reporters can uncover how much in taxpayer-funded "damages" the SEC may have awarded the Kansas firm in advance of the report publication.