Volatility spike prompts reforms at equity-options clearing house
By Phillip Stafford
The clearing house charged with overseeing the trading of options based on the Vix volatility index expects to finalise new risk models over the summer, after a sharp spike in the benchmark last year exposed flaws in their calculation.
The Options Clearing Corporation has been reviewing its methods amid criticism from users who claimed America’s largest equity options clearing house was asking for far more margin, or collateral to back trades, than was necessary.
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