This bug had serious real-world consequences for real people: <a href="https://www.reddit.com/r/tradeXIV/comments/7vi6oa/xiv_after_hours/" rel="nofollow">https://www.reddit.com/r/tradeXIV/comments/7vi6oa/xiv_after_...</a>
Interesting hn link from those days: A Tiny Hedge Fund Made 8,600% on a Vix Bet <<a href="https://news.ycombinator.com/item?id=16346175" rel="nofollow">https://news.ycombinator.com/item?id=16346175</a>>
There is a new XIV-like ETF just launched called SVOL. It reduces the exposure level and hedges risk with options (XIV ended up collapsing!).<p><a href="https://www.simplify.us/blog/volatility-premium-harvesting-reimagined" rel="nofollow">https://www.simplify.us/blog/volatility-premium-harvesting-r...</a>
Lots of people mentioning the implications to XIV ETF. But i think more about the implications to index calculators. Basically it's a bad business to be in and there's no real value in doing so... That's the lesson to be learned here. The SEC got rid of the iopv for ETFs 2 years ago... At the behest of the industry. But ultimately the lack of transparency, even if it's temporarily wrong, is a net negative for the little guy.<p>Edit: there's so much weirdness in this story. This is the first time I think the SEC has clamped down on a realtime index calculation agent. Also, why would the SEC go after them and not CS ... they're the ones responsible for selling securities to the general public.
Matt Levine provided context for anyone, like me, who have no idea what this is about:<p><a href="https://www.bloomberg.com/opinion/articles/2018-02-09/inverse-volatility-products-almost-worked" rel="nofollow">https://www.bloomberg.com/opinion/articles/2018-02-09/invers...</a>
XIV is an inverse of the CBOE volatility index? So you could think of it as a "stability" index ETN?<p>How different is a stability index from an index like S&P 500?
Penny stocks often have unreal bid/asks after-hours and they are completely fake... could they do something about that too?<p>As an example for today, look at ALPP... bid: $2.00, ask: $7.00 ... but is is messed up across the board... the real price is around $3.70<p>And I wish that they would also regulate cryptos because a couple of days ago the spread was $1000 on BTC so I tried to make some money but after I bought with Coinbase, they would not let me sell.
I am more disappointed about the TSLA situation. Leaving this company out of the SP500 until they were in the top 10 company in market cap. It was a very active decision when most people would assume the sp500 is a passive index.<p>[edit] For clarification, TSLA already had 4 quarters of profit in September 2020 matching sp500 profit requirements but was still left out on a very active decision. [1]<p>[1] <a href="https://www.bloomberg.com/news/articles/2020-09-04/tesla-falls-after-anticipated-s-p-inclusion-fails-to-materialize" rel="nofollow">https://www.bloomberg.com/news/articles/2020-09-04/tesla-fal...</a>