Summers' shocking call: SEC thoroughly investigates the secrets behind the abnormal surge in VIX on Monday
Former U.S. Treasury Secretary Lawrence Summers recently issued a strong call for the Securities and Exchange Commission (SEC) and major exchanges to immediately launch a comprehensive investigation into the abnormal surge in the VIX panic index on August 5. Summers bluntly said in a TV interview on Friday: "The sharp fluctuations in VIX on Monday may be largely the result of human manipulation, especially considering the illiquid instruments involved in its calculation process."
This remark quickly sparked heated discussions, and experts have joined in the discussion. Junyang: 954737157 echoed, pointing out that the abnormal movement of the VIX index may be due to the interweaving of multiple technical factors: market liquidity is exhausted, short-covering surges, and even the defects of the volatility measurement mechanism itself. Faced with this unusual fluctuation in the financial market, Summers' call has undoubtedly sounded the alarm for market participants and regulators, and an in-depth investigation into market transparency and fairness is about to begin.
