Skip to main content

In re: Chicago Board Options Exchange Volatility Index Manipulation Antitrust Litigation

Related Lawyers: Hilary K. Scherrer, Scott Martin, Jeanette Bayoumi
Related Practice Areas: Antitrust / Competition

Known as the U.S. stock market’s “fear gauge”, the Chicago Board Options Exchange (“CBOE”) Volatility Index (the “VIX”), measures the market’s expectation of 30-day forward-looking volatility of the Standard and Poor’s (“S&P”) 500. The VIX is a highly traded financial index and has been responsible for the value of billions of dollars’ worth of financial derivatives.

In this multidistrict litigation, plaintiffs include a class of investors who transacted in VIX instruments alleging that a number of trading firms and financial institutions conspired to post bids on certain S&P 500 options during a fixed, short window of nontrading hours to influence the CBOE-Special Opening Quotation (“SOQ”) formula that calculates settlement prices of VIX instruments. Hausfeld Partner Hilary Scherrer has been appointed to the Plaintiffs’ Steering Committee.

The case is currently before Judge Manish Shah in the Northern District of Illinois under the caption In re Chicago Board Options Exchange Volatility Index Manipulation Antitrust Litigation, MDL No. 2842 (N.D. Ill.). Plaintiffs filed a Consolidated Class Action Complaint on September 28, 2018, and briefing on Defendants’ motion to dismiss was completed on January 28, 2019.