{"id":12417,"date":"2015-09-19T15:06:59","date_gmt":"2015-09-19T20:06:59","guid":{"rendered":"http:\/\/olduvai.ca\/?p=12417"},"modified":"2015-09-19T15:06:59","modified_gmt":"2015-09-19T20:06:59","slug":"conspiracy-fact-vix-manipulation-runs-the-entire-market","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=12417","title":{"rendered":"Conspiracy “Fact” – VIX Manipulation Runs The Entire Market"},"content":{"rendered":"

Conspiracy “Fact” – VIX Manipulation Runs The Entire Market<\/a><\/h3>\n

Ever\u00a0since Simon Potter’s 2012 arrival as head of The NYFed’s trading desk<\/strong><\/a>, the manipulation of VIX\u00a0<\/strong>(and thus its reflexive levered tail wagging the algo-driven dog of the indices) has been front-and-center day-after-day in the so-called US equity ‘market’. Since the introduction of VIX ETFs there has been an almost inexhaustible supply of conspiracy theory coincidental evidence of a mysteriously well-capitalized market participant always willing to step on the neck of any volatility-spike, thus protecting poor market participants from any prospective plunge. While only fring-blogs have noticed this in the past, now\u00a0The FT admits<\/a>\u00a0that not only was\u00a0recent volatility in markets exacerbated by VIX ETFs<\/strong>\u00a0(thus confirming the tail-wagging-dog analogy), and further,\u00a0the nature of the link between VIX ETFs and VIX Futures (rebalancing) enables frontrunning which serves to reinforce any trend into the close<\/strong>\u00a0and thus manipulate the markets.<\/p>\n

Since Simon Potter’s arrival at The NY Fed in 2012<\/a>…\u00a0<\/strong>the rather amusing correlation between the collapse in net VIX futures non-commercial spec interest (yes, the\u00a0traded\u00a0<\/strong><\/em>VIX, which courtesy of the New Normal’s relentless synthetic reflexivity has a huge impact on the trillions in underlying assets: think massive leverage) as per the CFTC’s weeklycommitment of traders\u00a0<\/a>report, and the arrival of Brian Sack’s replacement as\u00a0head of the NY Fed’s trading desk<\/a>, Simon Potter, the same former UCLA Econ PhD who recently delivered a\u00a0very ornate speech\u00a0<\/a>explaining central bank interactions with financial markets “through the prism of an economist.” Now at least we know how said “interactions” look outside of “Market Manipulation for Econ PhD Dummies<\/em>” and in practice.<\/p>\n

\"\"<\/a><\/p>\n

So-called VIX-terminations have bcome ubiquitous…<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Conspiracy “Fact” – VIX Manipulation Runs The Entire Market Ever\u00a0since Simon Potter’s 2012 arrival as head of The NYFed’s trading desk, the manipulation of VIX\u00a0(and thus its reflexive levered tail wagging the algo-driven dog of the indices) has been front-and-center day-after-day in the so-called US equity ‘market’. Since the introduction of VIX ETFs there has […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[124,503,569,9130,1141,9131,9129,4318],"class_list":["post-12417","post","type-post","status-publish","format-standard","hentry","category-economics","tag-central-banks","tag-market-manipulation","tag-new-york-fed","tag-simon-potter","tag-vix","tag-vix-etf","tag-vix-manipulation","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/12417","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=12417"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/12417\/revisions"}],"predecessor-version":[{"id":12418,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/12417\/revisions\/12418"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=12417"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=12417"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=12417"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}