Vexed by Vix: post-Brexit squeeze sparks fears of losses

Rerun of short squeeze on Vix futures could backfire on speculators

vix-rollercoaster-danger

June 24 was a grim day for most equities investors. As the results of the UK's vote to leave the European Union began filtering in, equities traders – many working through the night on a mixture of adrenaline and energy drinks – were treated to a deepening sea of red as global markets tanked. But amid the flurry of panicked selling, equity derivatives traders were taken aback when one sell-off that everyone had expected in the event of a victory for the leave campaign failed to fully materialise

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: