Morgan Stanley, Barclays, DRW Securities win dismissal in SPX options manipulation case By Investing.com

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Morgan Stanley, Barclays, DRW Securities win dismissal in SPX options manipulation case

Published Sep 30, 2023 03:42

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Morgan Stanley, Barclays, DRW Securities win dismissal in SPX options manipulation case

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The case against Morgan Stanley (NYSE:MS), Barclays (LON:BARC) Capital Inc., and DRW Securities LLC has been dismissed. The financial institutions were previously accused of manipulating SPX options linked to the VIX index managed by Cboe Global Markets (NYSE:CBOE) Inc. This alleged manipulation, which reportedly occurred on Feb. 5, 2018, had caused a significant one-day surge.

The plaintiff in the case was Two Roads Shared Trust who claimed to have lost $520 million due to the artificial and inflated levels caused by the supposed manipulation. However, the case, known as LJM Partners v. Barclays, 20-cv-831, was dismissed following the defendants' assertion that the accusations were "contrived" and "fatally flawed".

The dismissal of this case marks a significant chapter in the ongoing scrutiny of trading activities within global markets. It also highlights the complexities involved in proving market manipulation allegations against major financial institutions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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