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’The Vix feedback loop, analysed
Are VIX ETNs and Vix-related funds influencing the Vix futures curve?
Has the popularity of Vix trading come to impact wider volatility surfaces, if not the S&P 500 options used to construct the Vix index themselves?
Is the Vix tail wagging the implied volatility dog?
Quick answer:
Do banks see ETFs as inexpensive funding for illiquid securities? – Part I
Recent trends in Exchange Traded Funds (ETFs) could create “potential financial stability issues” says the Financial Stability Board.
We say: about time someone stated the obvious.
We know other regulators have cast their eye on ETFs,
Can you trust the Vix?
It’s official. Volatility is back in vogue.
On Wednesday the Vix index, which is derived from the value of S&P 500 options, posted its biggest two-day increase in nine months following a sharp fall in S&P 500 equities on renewed fears about the robustness of the global economic recovery.
Frankenstein’s ETFs for hedge funds
We return to Monday’s Kauffman Foundation ETF report, with a note on what the authors say about bespoke structuring of securities for the specific trading needs of hedge funds and banks’ internal market-making and risk management operations:
ETFs and the ‘flash crash’
Nasdaq has published the list of trades it cancelled as a result of Thursday’s epic market ‘flash-crash’ — and as it transpires, a significant number of those affected were ETFs or ETNs.
Index Universe sums up the situation — although remains baffled as to why.
Vertical vertigo in ETFs
A definition of the vertical integration model from Wikipedia:
In microeconomics and management, the term vertical integration describes a style of management control. Vertically integrated companies in a supply chain are united through a common owner.
How ETFs are like mortgage-backed securities
Bedlam Asset Management takes a look at exchange traded funds in its latest market commentary (H/T paver). Specifically, at how — largely because of greed — a sound concept has once again potentially been bastardised by the financial industry.