VIX Misbehavior Leads Exchange to Fine Trader $1.28 Million
- Akuna Securities fined $1.28 million without admiting guilt
- Case pertains to auctions used to settle the volatility index
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Suspicion has been swirling for years that something fishy is going on with Wall Street’s benchmark index for stock volatility. Now, regulators have brought fines in the space, though they may not be the smoking guns critics expected.
Cboe Global Markets Inc., which owns the VIX, fined high-frequency trading firm Akuna Securities LLC $1.28 million for improper trades in options that are used to set the price of the index. The firm neither admitted to nor denied the allegations in a disciplinary action announced Friday.