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Friday, October 24, 2008

VIX Spikes.... AGAIN


U.S. regulators are taking a closer look at unprecedented volatility in stock markets near the close of trading, hunting for any signs of manipulation.

"It is something we're looking at," said Brendan Intindola, a spokesman for the Financial Industry Regulatory Authority. "We're really taking an extra close look at it in the light of the volatility we've seen in the market in recent weeks."

FINRA typically looks at "market on close" activity, which are orders executed as near to the end of the exchange day as possible.

But its surveillance unit has now ratcheted up its examination of possible efforts by some firms to try to raise the price of a stock for marking near the end of the trading day. "Marking the close" is a form of market manipulation.
If the market was skyrocketing rather than tanking, would they be investigating this?