VIX Rigging Talk Erupts on Wall Street After Another Wild Swing
- Wild swings in fear gauge before derivaties expired Wednesday
- Claims of possible manipulation surfaced in academic paper
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The Cboe Volatility Index is how Wall Street measures anxiety. Lately it’s the gauge’s own plumbing that’s making people nervous.
It’s a recurrent claim -- the VIX is rigged. It got a fresh airing Wednesday, when the index swung wildly just as derivatives on it were expiring. Billions of dollars are earned or lost as VIX futures settle. The concern is that owners of those wagers are willing to spend a few million to make them pay off.