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Tuesday, February 13, 2018

Whistleblower Exposes "Rampant Manipulation Of VIX"

https://www.bloomberg.com/news/articles/2018-02-13/vix-manipulation-costs-investors-billions-whistle-blower-says

We contend that the liquidation of the VIX ETPs last week was not due solely to flaws in the design of these products, but instead was driven largely by a rampant manipulation of the VIX index,”
CBOE quickly responded with a denial:
“We take our regulatory responsibilities and the oversight of our markets very seriously,”
“This letter is replete with inaccurate statements, misconceptions and factual errors, including a fundamental misunderstanding of the relationship between the VIX Index, VIX futures and volatility” exchange-traded products.
“As a result of these errors, we feel the conclusionary statements contained in this letter lack credibility.”

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