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'Whistleblower' alleges manipulation of Cboe volatility index

'Whistleblower' alleges manipulation of Cboe volatility indexNEW YORK/BENGALURU (Reuters) - Wall Street's most widely followed gauge of future stock market volatility is being manipulated, causing billions of dollars in losses a year to unwary investors, a law firm representing an "anonymous whistleblower" alleged in a letter to U.S. financial regulators and released on Monday. The letter, to both the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission, was provided by a Washington-based law firm which represents the anonymous person claiming to have held senior roles in the investment business. Claims in the letter outline how trading firms have taken advantage of the way the Cboe Volatility Index <.VIX> is being calculated in order to manipulate the index.

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