Summers Calls for SEC, Exchanges to Probe Monday’s VIX Surge
- VIX index, key gauge of volatility, rang alarm bells with jump
- Summers queries whether liquidity issues were involved
Larry Summers
Photographer: Mark Kauzlarich/BloombergThis article is for subscribers only.
Former Treasury Secretary Lawrence Summers urged the Securities and Exchange Commission and relevant exchanges to look into the historic surge in the most-watched gauge of US financial volatility on Monday.
“My understanding is that because there are some illiquid instruments that go into the calculation of the VIX, the VIX had a somewhat artificial move on Monday,” Summers said on Bloomberg Television’s Wall Street Week with David Westin on Friday. “Since that is so widely watched an indicator, issues of liquidity, issues around how it settles, I think should be studied by the relevant parties in the industry and the regulator — the SEC.”