Kehoe Law Firm, P.C. Investigating on Behalf of VIX Futures and VIX Options Contracts Traders
PHILADELPHIA, PA, UNITED STATES, March 13, 2018 /EINPresswire.com/ — Kehoe Law Firm, P.C. is investigating whether the anti-manipulation provisions of the Commodity Exchange Act were violated through the intentional manipulation of the final settlement price of VIX futures and VIX options contracts linked to the Cboe Volatility Index® (VIX®), "a key measure of market expectations of near-term volatility conveyed by S&P 500 stock index option prices."
A recently filed class action complaint alleged that from 2011 to the present, the as yet unknown defendants caused an artificial monthly final settlement price of expiring VIX contracts. The defendants caused an artificial settlement price, allegedly, by placing manipulative S&P 500® Index (SPX) options orders that were intended to cause artificial VIX contract settlement prices in the expiring contracts. The result of this conduct was a significant price spike either up or down from the previous day's closing price. The manipulative scheme also, allegedly, impacted non-expiring VIX contracts and the VIX. According to the complaint, filed in United States District Court for the Northern District of Illinois, Eastern Division, the manipulative scheme's impact dissipated shortly thereafter following a period of trading. Moreover, extreme price moves and reversions back, like those exhibited in VIX contracts, are a sign of manipulation.
According to CNN Money, the "lawsuit . . . claims traders manipulated the value of VIX options and futures by making bets on the S&P before VIX settlement auctions. The unidentified plaintiffs want to subpoena the Chicago Board Options Exchange, which it says can identify traders and bets that contributed to 'hundreds of millions of dollars in losses for investors across the country.'"
Have You Traded Volatility Index Futures OR Volatility Index Options Contracts on the Chicago Board Options Exchange ("CBOE") or Cboe Futures Exchange Between January 1, 2011 – Present?
Have You Held VIX Futures or VIX Options Contracts Through Settlement or Non-Expiring VIX Futures or VIX Options Contracts on a Day the Settling VIX Futures Contracts Settled?
If so, your rights under federal law may have been violated. If you traded in VIX futures or VIX options and wish to speak to an attorney about your potential legal rights or claims, please contact Kehoe Law Firm, P.C., John Kehoe, Esq., firstname.lastname@example.org, (215) 792-6676, Ext. 801, e-mail email@example.com or visit Kehoe Law Firm's VIX Futures and Options page.
Kehoe Law Firm, P.C. is a multidisciplinary, plaintiff-side law firm dedicated to protecting investors and consumers from corporate fraud, negligence, and other wrongdoing.
John Kehoe, Esq.
Kehoe Law Firm, P.C.
(215) 792-6676, Ext. 801
email us here
Source: EIN Presswire