Aaaand Cboe is plunging.
It looks like the market’s jitters about the VIX are being taken out on the exchange operator at this point because have a look at this:
So just to put that in perspective … well, actually there really isn’t any perspective here, because look:
As Bloomberg reminds you, Cboe owns the VIX intellectual property, which means folks are nervous about what the fallout might ultimately be from yesterday’s insanity.
This morning, Credit Suisse said it will liquidate everyone’s favorite short vol. doomsday vehicle and Horizons also halted its VIX ETF, citing “an unexpected level of volatility” which has “impaired the trading of the underlying derivatives used by many VIX-related exchange traded products.”
— Bloomberg Markets (@markets) February 6, 2018
The drama continues. Stay tuned.