FINRA Looking Into Volatility Manipulation

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FINRA Looking Into Volatility Manipulation

(New York)

Everyone is blaming last week's big volatility on the VIX index. Explanations for the big falls are swirling and include an over-reliance on VIX-linked funds and insurers' volatility strategy. However, FINRA is now looking into another potential cause-deliberate manipulation of the VIX. FINRA suspects traders have been trying to deliberately influence the VIX to move the price of derivatives. The tip on the behavior was given by an anonymous whistleblower.

FINSUM : Given the track record of misbehavior (e.g. Libor), it would be no surprise if traders were trying to manipulate the VIX. However, it is unclear what role that might have had in last week's crash.

  • finra
  • vix
  • volaility
  • manipulation

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Stocks

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