Traders Will Now Get Alerts on VIX Turbulence
- Traders will receive alerts if Cboe spots unusual developments
- Alerts are part of Cboe’s attempt to calm concerns about VIX
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The exchange that oversees settlement of the stock market’s volatility benchmark, a monthly procedure that drew scrutiny amid allegations of manipulation, is adding precautions aimed at keeping traders informed if prices turn turbulent in its run-up.
Beginning this month, Cboe Global Markets Inc. will alert clients if it spots any developments that could impact the monthly settlements for VIX futures and options, the exchange said in an emailed statement Monday. Factors that could trigger a notice include major market-moving news, supply-demand imbalances in S&P 500 options or turbulent trading overnight.