VIX Funds Face Fresh Scrutiny From U.S. Regulators
- SEC is said to start broad review of exchange-traded products
- CFTC is also said to examine trades tied to ‘fear gauge’
A trader looks over computer monitors as he works in the Cboe Volatility Index (VIX) pit.
Photographer: Daniel Acker/BloombergThis article is for subscribers only.
U.S. regulators are scrutinizing this month’s implosion of investments that track stock-market turmoil, including whether wrongdoing contributed to steep losses for VIX exchange-traded products offered by Credit Suisse Group AG and other firms, several people familiar with the matter said.
The Securities and Exchange Commission and the Commodity Futures Trading Commission have been conducting a broad review of trading since Feb. 5, when volatility spiked and investors lost billions of dollars, the people said.