Cboe Global Markets, the options and equity exchange, has hit crypto and options trading firm Akuna Capital with a $1.3 million fine for certain options trades tied to the VIX, according a report by the Wall Street Journal.
Final VIX settlement values
As reported by the Journal, Cboe said in a disciplinary filing that Akuna “submitted S&P 500 options orders to increase the likelihood that certain derivatives bets would be included in the auction that helps determine final VIX settlement values.”
Cboe claim’s Akuna’s trades impacted the settlement values of VIX derivatives. Still, Cboe was not able to prove whether Akuna was trying to manipulate the auction, a person familiar with the situation told the Journal. Akuna paid the fine, but did not confirm or deny that it breached Cboe’s trading rules.
Akuna Capital was one of the first trading firms to trade Cboe’s bitcoin futures product, which went live in December 2017. The firm is also a big investor in the market for cryptocurrencies, having backed companies including BlockFi and RealBlocks.
The company specializes in providing liquidity as an options market-maker – meaning that they are committed to providing competitive quotes that the company is willing to both buy and sell.
To do this successfully Akuna designs and implements their own low latency technologies, trading strategies and mathematical models.
More on Cboe
Cboe is one of the world’s largest exchange holding companies, offering cutting-edge trading and investment solutions to investors around the world. Cboe offers trading across a diverse range of products in multiple asset classes and geographies, including options, futures, U.S. and European equities, exchange-traded products (ETPs), global foreign exchange (FX), and multi-asset volatility products.
Cboe’s trading venues include the largest options exchange in the U.S. and the largest stock exchange by value traded in Europe. In addition, the company is the second-largest stock exchange operator in the U.S. and a leading market globally for ETP trading.