bds231

Inefficient Markets: Shorting, the VIX, and Unintended Consequences

I have been wondering the same thing -- how much are short restrictions driving the VIX? But if you look at a longer-term chart, the behavior of the VIX isn't all that different from 1998. Obviously the rest of the world is in a very different state, but perhaps this behavior isn't so out of the ordinary. Has anyone seen any data on how the short restrictions could be affecting the VIX?