cboe, they have a mow totive of increasing revenues.boe should have implemented some circuit breakers to help initiate this. cboe issued a statement to us saying we take our regulatory responsibles ailities and the oversight of our markets seriously. this letter replete with inaccurate statements, misconceptions -- this is a complicated issue and it involves how the vix gets priced off the options for the s&p 500 but there is various ways you can interpret how. take a look at our cboe, they got 25% of revenues of various vix products their earnings came out as well. we'll get more on that later many the day as we get more information. dow jones industrial average is downright now. thank you, bob pisani. >>> i want to get back on the deal of xerox, remember the deal that's combined with fuji, xerox. it is well seeking a nullify of the joint venture between the two. the complaint brought by deason that the fuji/xerox allows fuji to control xerox intellectual property and manufacturing rights in the 36 billion asia-pacific market. they say

read it carefully. >>> welcome back here's volatility index, there are cboe shares.oared over 50 today in wild trading as two institutions shut down products tied to volatility bets. then blackrock warning customers about buying into such products. lesscy picker joining us. >> collapses emblematic of some of the most famous events in financial history. the focus is on two securities whose purpose was to bet on the calmness of the markets. in exchange-traded note, ticker xiv, has crashed, coming after a spike in volatility yesterday triggered concerns that the etn would need to liquidate. credit suisse gave notice the etn's last day of trading would be february 20th today xiv continued the slump that began in yesterday's after-market, at the etn was halted several times before closing almost 93% lower another security had a similar fate, though ticker svxy. that security is also betting against volatility but it's structured as an exchange traded fund by pro shares it won't be liquidated, but it's value was also down today, more than 30% both have raised red flags amo

we have seen the cboe, the proprietor of the vix index havef, shares in the cboe tanked since this happenedsome reputational issues. potentially regulators looking at what happened. you have the second order effects on markets and this is where it gets really complicated and quite unclear. we have a lot of dealers who have been on the other side of the short volatility trade . they have to go out and hedge their exposure as well, and no one is exactly certain what that exposure looks like right now. on the plus side, we have seen some estimates saying that the volatility complex is probably vol ball atnet long l at this point. it is unclear what is happening in the back end of the volatility market right now. one the one is now that these products are sort of dying out, in theory, once again, they should not be having much of an impact on the vix going forward, so maybe we start going back to slightly more normal times when it comes to the vix movement. again, the volatility of the volatility index, we did see that rise to a record on monday. really stunning stuff there. david: yeah, the vi

manipulation of existed for several years at the chicago board actions exchange cboe but now a whistleblower says they could be costing traders millions of dollars today to be clear there's no evidence that such is the case but is certainly something to be examined and i'm glad that regulators are on the case further complicating matters are the myriad financial products which investors use for exotic bets like leveraged and inverse exchange traded products which can boom or yes you guessed it bust a traders portfolio in a single day i was personally contacted by several traders one who lost his entire life savings on these risky products i've been speaking out about the need for more disclosure especially for average mom and pop investors and we'll have more on this topic coming up in today's broadcast. president trump's infrastructure proposal released earlier in the week looks like it's a little too little and a little too late for many on wall street when mr trump was elected after promising to focus on a trillion dollar rebuilding efforts many on wall street cheered and markets rose on

cboe with a disappointing earnings report and chesapeake down softly over they -- the fact they are selling asset. high-quality companies being sold as a result -- and resulting in the big weekly declines. these are#btv 6805, the major indexes plus the russell 2000, all down in a big way. right now, the worst set of weekly declines for the dow since 2008. the s&p 500 this week since august and on a back-to-back week, similar to early of 2016. julie: nearly four hours to go on the week. thank you. interesting perspective on what happened in 2011. u.s. stocks have been swinging between positive and negative. stopping hopes of finding stability at the end of the week. the jitters have been pushing treasury yields higher, the 10 year above 2.8%. from thes is rod smyth riverfront investment group. talk to us about what you think is coming next. judging from your recent notes, you are not overly concerned that we will come to the end of the bull market. what would change your view? what signals are you watching? >> it is wonderful, thank you for having me. that was a great summary from abigail. i

cboe, home of the notorious vix futures.ay have something to do with that the movie, one of my favorites, features are up 9.5% this year thanks to the flu. >> has anybody seen beaks? thank you very much. steven, you want to make a point. >> i'll move to another point, which is that every single one of those moves says the market is rational. the moves may be exacerbated, but every single move, expedia, trip adviser fundamentals were good the report was good. it was poor for expedia. just go through them so trading places. that's great but to me, that gives me confidence in the market >> all right confidence in the market good way to leave it here's what's coming up on the halftime report. >> food fight. sheiake shake, kraft and camer soup plus, the stock options traders is set to move pete najarian found unusual activity and biotech blitz. the stock showing the best quick value after last week's quick fall the halftime report is bacin twmite o nus.k ♪ ♪ fight security threats 60 times faster with ai that sees threats coming.

to physically engage in any trading itself he's alleges a breach of fiduciary responsibility by the cboe s they say for its part it lacks credibility. rebecca patterson is a managing director and also a cnbc contributor, and mark travis is president and portfolio manager with intrepid capital funds. there is lots of trades that are put in the market and then canceled put in the market and then canceled should we see any evidence of this >> i haven't seen any evidence of this. i don't do that type of trading for a living day to day, so i wouldn't necessarily be the right person to ask. what is frustrating and a shame is whether or not these allegations are true the fact that they're plausible. we have seen this before with libor, we've seen people found guilty in court. we know this is possibility. i hope it's not true even if there's thousands of great people in the industry, there's some bad actors. it doesn't help confidence, does it >> it takes me back to the summer of 2007, as you recall, barnes sterns, mortgage-backed funds that goat the cracks in the armor, so to speak of mortgage-

we used to focus on, as we should, the cboe volatility index, level of fear, it is a snapshot. these were two new things created by the same folks. inverse to protect you -- i'm i know i'm sounding wonky and obsessive -- >> credit default swaps. neil: my point people use these to shield themselves from market forces you can not do that. >> my point, generally you can't, but my point is those are not the reasons why we have a -- neil: they compound them. whatever is going on. >> everything is compounded when the heard starts moving certain way. -- herd. trump's fiscal policy, markets debate we get three, 3 1/2% growth or not much more growth. if we don't get more growth, the markets are saying you know what. >> we'll get much bigger deficits, much higher interest rates, not the 2.75% 10-year. figure like 3.75%. then we will have not just a market correction. we will have a recess. now the markets are saying that. by the way, david, we had the conversation yesterday. i don't subscribe to that a lot of smart people think the corporate tax cut will not happen. not produce 3 1/2% gr

it's more expensive than the cboe but that's gone from 134 to 114.of analysts took the target down to 110 i think it is safe to dip in a toe. the products they trade are under the microscope now buy cboe but long term i like the amerimercantile exchange be >> marty wants your thoughts on wells fargo. thoughts today that berkshire is jumping in to defend them. what do you think? >> i like the financial space. there is a lot more opportunity outside of wells fargo given the opportunities at jpmorgan, bank of america, first republic there are a lot of banks i think have a clear vision going forward. there will be bumps along the road a better entry point to wells than now >> shayna wants to know if tez la will rebound from the price dip and at what price range should i wait to buy it? >> great question. tesla is in the 280 to 350 range. i'm not sure it will get to those levels it will take out the all-time high of 380 or so. it's not a car company this is a technology company buy into the story every so often it is an opportunity to buy the name. i don'

underneath the rear seats there is a contact point for the cboe warning function it works no matter how you can figure the seats which is quite clever. but apart from variable flex is the caracal actually better than the a take on. i'm an afterlife but since the car wreck apart are the one point five liter engine the infotainment system and the variable rear seats if you don't want or need any of that and then it would be hard to choose between the two so what i would recommend this is andre is configuring and take and a car rock the way you want your car to be and then comparing the prices. over a century has passed since the morris motor company was founded in one thousand thirteen cents william morris decided to change over production from bicycles to cars he opened his first motor works in cali oxfordshire and began turning out the morris oxford ball knows a few originals have survived one is owned by hammond yes of moyes. is was one of the last in the bullnose series built in one thousand nine hundred six it was followed by the flat nose series which had a conventional flat radiato

year to date having been up six percent he's a masochist i mean if there were more on futures on the cboehe'd be rich because he himself is the biggest moron of all and then here's another big going story again you know many governments in the world are trying to protect us from social media they're trying to protect us from twitter they're trying to protect us from facebook. that you should only tune in to m s n b c to get your official democratic news and you should only tune into fox to get your official republican news and don't listen to those ordinary shows out there on twitter and facebook and your like your cousins and uncles don't listen to those people there because their minds might not be able to contemplate and understand fake news because here's another headline poland central bank secretly paid you to burgers to slander kryptos so a polish youtube or with around one million subscribers was paid about thirty thousand dollars by the central bank of poland in collaboration with the polish financial supervision authority to portray crypto currencies and the negative light witho

the cboe the year and a half ago you were exposed to agent orange fifty years ago yeah so it was in my body all that time i didn't know. i just couldn't sleep one night when in the hospital. they did a bunch of blood tests and they came up with the fact that i had bone cancer the doctor told me that. i had only about a year to live because it was stage four right he asked me if i had been in the service and i told him yes then i wanted to know what branch were you when i said i mean he asked me was vietnam i said yes he said age and already i said really didn't look good i had stage four and i had to go in the chemotherapy treatments. i guess the chemotherapy can really mess up my course toxic process and i was at the point where i didn't know who i was aware i was i was double checking everything i was doing because i was you weren't sure if you forgot yeah and i thought maybe i didn't have all the time and so it dementia because my memory wasn't there how will you sixty nine i'm fifty one. and i got the worst dang memory bruce no kidding you just asked him that ten minutes ago if my

cboe, chicago board options exchange generally does a good job.g pushed around, although there's never been, you know, any hard evidence. there's been a couple of traders. last year there was two traders that were buying bass of violations related to trying to push prices around with the vix, but it rings true to me, you know, i don't have the details like i did back in the day, but i've had traders contact me also, becky, and tell me they've lost money they think prices are being pushed around. so it doesn't surprise me what we're seeing and i'm glad that regulators are looking at it they'll never say they are, at least it's unlikely they'll say they're looking at it, the regulators, but i would bet that all of them, not just finra, but the sec itself, my old agency the cftc and perhaps the national futures industry which is the parallel to finra in the futures world. >> bart, yesterday the cboe put out a statement saying they didn't believe the voracity of the charges from this whistle-blower they saw some inconsistencies in the statement and so

even as the market came back, the shares of cboe have been negative by around 5%.ld be impact on the cboe, which has been benefitting from the volume taking place in some of those instruments, and in fact, the cboe remains down by about 5.25% you wonder whether some of the other brokerages follow fidelity's lead and restrict their clients from doing this as well >> they say it's only temporary, and that in the foreseeable future, they may be allowed to buy it again provided the market, i think it says cooperates, even though that says corporates. >> yeah. >> i don't know if this is a good move or not, to be honest with you it brings back memories of me to '08 when people were banning short selling and this, that, and the other thing. i know that's another conversation for another time. let's bring in a guest now with us a wall street trading coach is doug, aka, dr. doug. good to see you. >> good to be here >> a mouthful for me do you have any opinion on the psychology of -- i mean, reacting to this news. too, fidelity telling their clients you can't buy and sell th

cboe this index is the closely watched gauge of anxiety that hit its highest level since november 2016. now some investors blame the negative tone on d.c. we're going to pull up a chart of the dow and you'll see when that house gop memo was released and there's an exact point where you begin to see here it is 11: 53 just before noon eastern time and you know you have this cloud over these areas that are supposed to be apart from politics of course the fbi and the justice department. now, other investors say okay fine you took a little bit there but really what caused the market selloff was worries about inflation and what the fed is going to do in response, so january jobs report better than forecast fantastic. wage growth shot up so wage growth had been sluggish for almost a decade and then it increased at the fastest rate since 2009 so it essentially means that the fed is more worried about inflation or at least watching it and may raise rates faster and more frequently than previous estimates, so if you take a look how the bond market reacted this is usually when fed fears show up a

has serious error twice referencing the cme when it should be cboe his attorney said it was a clerical error and does not help our credibility. back to you. >> no, it doesn't. as we continue to dig into this story. one investor who did call the vix as the next big short a few months back. leslie picker with more on that. >> big short meaning it was a popular short. i spoke with quadrattic capital manager in november four months before the markets started their wild swing she focused on the risk on what she called a crowded trade and shorting volatility. >> we're in a low yield, low return environment some investors have been forced to figure out other ways to generate yield in their portfolio. a common theme, the best sharp trade out there is selling vol the problem is everyone is doing it now i like to say the big short out there is people who are short vol. that doesn't mean vol is going to spike hugely at any point, but it has the possibility to because so many investors are short volatility. >> that trade was turned on its head a week ago after the vix more than doubled in one day

having been up six percent previously he's a masochist i mean if there were more on futures on the cboehe'd be rich because he himself is the biggest moron of all and then here's another big going story again you know many governments in the world are trying to protect us from social media they're trying to protect us from twitter they're trying to protect us from facebook. that you should only tune in to m s n b c to get your official democratic news and you should only tune into fox to get your official republican news and don't listen to those ordinary shows out there on twitter and facebook and your like your cousins and uncles don't listen to those people there because their minds might not be able to contemplate and understand fake news because here's another headline poland central bank secretly paid you tube burgers to slander kryptos so a polish youtube or with around one million subscribers was paid about thirty thousand dollars by the central bank of poland in collaboration with the polish financial supervision authority to portray crypto currencies and the negative light wit

concerns about such manipulation of existed for several years at the chicago board options exchange cboe but now a whistleblower says they could be costing traders millions of dollars. there's today to be clear there's no evidence that such is the case but it's certainly something to be examined and i'm glad that regulators are on the case further complicating matters are the myriad financial products which investors use for exotic bets like leveraged and inversed exchange traded products which cambone or yes you guessed it bust a traitorous portfolio in a single day i was personally contacted by several traders one who lost his entire life savings on these risky products i've been speaking out about the need for more disclosure especially for average mom and pop investors and we'll have more on this topic coming up in today's broadcast. president trump's infrastructure proposal released earlier in the week looks like it's a little too little and a little too late for many on.

concerns about such manipulation of existed for several years at the chicago board options exchange cboe but now a whistleblower says they could be costing traders millions of dollars today to be clear there's no evidence that such is the case but it's certainly something to be examined and i'm glad that regulators are on the case further complicating matters are the myriad financial products which investors use for exotic bets like leveraged and inverse exchange traded products which can boom or yes you guessed it bust a traders portfolio in a single day i was personally contacted by several traders one who lost his entire life savings on these risky products i've been speaking out about the need for more disclosure especially for average my. and pop investors and we'll have more on this topic coming up in today's broadcast. president trump's infrastructure proposal released earlier in the week looks like it's a little too little and a little too late for many on wall street when mr trump was elected after promising to focus on a trillion dollar rebuilding efforts many on wall street ch

cboe is the worst-performing stock in the s&p 500 index today, down 10.5%. vix spikehe yesterday. there is speculation in the vix. is, the more line shorts of volatility. downhis is being squeezed as this line comes back up. we will talk more about this, walking folks through what happened yesterday with volatility products and what might happen now. shery: julie hyman with the latest on the markets. to help us come to terms with the wild equity markets of the last few days, let's go to the holland and company. spiking and yields we are seeing five year yields tightening. how does this have to do with liquidity? michael: liquidity is key. julie hyman was referring to structured products, and they are starting to make a mess in the market. ,hen they start acting crazy the market completely disappears. no liquidity whatsoever. you have the stock exchange trading upper rhythmic trading, machines are at work. you mentioned a scenario in your rates going down, not up. and interest rates for stronger yesterday. -- for stronger yesterday. this is machine driven. is the tech bubble done w

that sure thing was the sale of futures on the cboe volatility index,or vix, which measures of options a sure thing in the record-low stretched across every asset class, from equities currencies, until last friday. what should people do now? as things go higher over next 9 months people should rebalance out of higher risktheir portfolios. stay invested but know there is risk. keep maxing 403b, etc . .why?fed is no longer quant easingfed reserve is raising interest rateswe are near full employmentinflation could show upalgorithmic trading, exchange- robo-advisors cause the10% plunge?machines likely made the highs and lows more dramatic may.who was one of the big losers yesterday?new and young investors. the websites of robo-advisors wealthfront andbetterment, which create automated portfolios based onthe preferences of their clients. margin calls also added to the sense that the broader market is notout of the selling woods yet. why the crazy fast swoosh down late monday's market? the "can't-miss" trade of 2017 blew up and sent stocks plunging. that sure thing was the sale of futures on

there is the rights of free enterprise markets celebrations to cboe, free markets.ing to get hurt. >> it is all about the olympics. i don't know where you start in purdue lost and xavier won >> and st. john is the hottest team >> where do they go? michigan state moving up one or two or something >> i think michigan state does >> virginia lost >> you had to include the olympics and this. i think that nova maybe softer than i like. >> where is xavier >> they go higher. >> they're fabulous in the tournament i may pick them for the final four >> it is copping ming up to theg east tournament, we should go. >> georgetown is looking better. >> the march 30th. >> we drop everything for that >> i am going to go, call stub hub. can you help me with that, go on the -- >> the app >> thanks jim. we'll let you go >> so you go on and they give you where the seats are. >> you pick the seats. >> you don't call them >> you put the credit card in and how do you get the tickets >> get the app and then the bar code will be on your phone and you scan it like you do at the airport. what d

the cboe has the index, vic, volatility and reflects how much fear is in the marking.t's sking of late, there's a lot of fear in the markets so it swing violently. i always think it's a stupid idea to invest on fear that could change on the second. what do i know. a lot of people who step back, they're fearful what we're going through now won't end after the six trading days and there's more to come. and peter is a legend in the bear market economy and unfolding events that we're witnessing. we're not done by a long shot and joins us right now. and he has even the voice to match the ominous tone he's laying out. very good to see you again. you're saying we're not done with this, right? explain. >> yeah, good to see you again, too, neil. i'll try to keep my voice-- should i pitch my voice higher. neil: i don't know, it's like barry white saying sell everything. but go ahead. [laughter] >> yes, neil, now i should say when we spoke the other day i told you, yes, it was further to go and we came down. what we did on friday was interesting, neil. we got down to the 200-day

so the cboe, which is one of the main source of options data and options markets publishing an indexhat replicates the return of the s.u.v. with assuming that on a weekly basis you roll a protection strategy that protects at the 5% down side. and so this ing debsing goes all the way back to the late '80s. and so for a lot of the graphs that we'll look through looks at how does this compare to a if s&p portfolio and looking at it from a month-to-month or rolling one-year basis to be as clear as possible with one of the things we're looking at. on page 26 here, kind of outlines this graphic of periods where s&p's down on a rolling 12-month basis, how does this type of straefj do in this market environment. one would think if it was executed with perfection and there was no cost to buying protection, that you would have no losses greater than 5%. that's where is the protection is set. but the fact is costs come into it. volatility plays a role. time plays a role. in terms of how one executes and actually implements a strategy like this. and so this is assuming you, on a weekly basis, ar

there it is, we see the cboe volatility now down four, when we started the show we were down 10, so we'vet fear, come up off of that complacency floor. where would you be advising your clients to put their money at the moment? >> i think stay calm for now. >> liz: buying opportunity? >> i think there's lots of buying opportunities here particular when things get cheap and wal-mart is 10 or 11 or 12% cheaper than a couple days ago certainly a good name. we think its been a long bull market run so we are big trend followers at pacer ets, so we think that it makes sense that you start building the arc before it starts to rain so positioning your portfolio for the inevitable i don't know when it's going to happen. we'll have a bear market today, it maybe today, tomorrow or a year oh, tour or three up the road but build portfolios in anticipation so you don't get overly emotional when the real carnage happens. >> liz: here is the real bell in about three seconds and i need to tell our folks that the dow is now down 170 points, remember yesterday, we saw a lot of about 250 points, so take it in

since the vix traded across the street here at cboe, the vix is down five points today, now below 30,know, vix has been pretty volatile itself. liz: wow. >> that is also got to be a good sign. liz: 469 points to the upside >> i'm looking at market-on-close orders. we have a few minutes to go. not far off session highs. market to close orders, $2 billion, notionally to buy. that could get pared off. that is a net of the buys and sells. so big picture, we are seeing buy orders. buy orders for for the, for example. this, sr. to the s&p 500, which could mean we're going higher. as you know, we have five minutes left. that doesn't necessarily hold true. but we are seeing a buy orders, two billion notionally for the buy on the sell. liz: exactly five minutes, five minutes to go for trading. ford, by the way i'm told, dipped into bear market territory. >> we've seen a lot of people buying into ford though. liz: it could be a buying opportunity for some stocks you have been waiting to be on sale. nicole, thank you very much. gang, let me press a reset button with a two minutes left here. dow

that may be an issue there i did contact cboe and ask for a comment. i haven't heard back from them in the meantime, if you're looking for a bright side, markets are getting cheaper. we kept complaining one of the risks we had is the expenses of the market it's pricey. about a week ago waits 18.5 times 2018 earnings. historically, 15 or 16 is the a average. yesterday it opened at 17.9. and today we opened at 17.2. so the good news is the market is getting cheaper and right now, the dow jones industrial average down 66 points guys, back to you. >> bob, what are we to make of wild swings in the vix that's not volatility, is it >> no. what's happened, the vix measures the cost of buying protection in near terms -- near term puts and calls. and if wh you get a sudden drop in the market, when you top 100, 150 points in the s&p 500 in a short period of time, that's going drive up options prices. also, nobody owned any protection one of the reasons the vix was so small, so low priced is people stopped buying protection, particularly way out of the money so if

now we've reached out to the cboe for comment and we'll update you with a comment when we get one. >>et volatility impact growth in consumer spending? steve liesman's been looking into this very topic he joins us now. >> joe, thanks did you book a more expensive vacation than you otherwise would have because your stock portfolio was swollen with gains maybe you bought a more expensive car because your home value was way up if you did any of these things, you contributed to the wealth effect that's the tendency to buy more and save less when stock and real estate values rise. economist estimate people spend 3 to 5 cents in every dollar from their windfalls that may not sound like much but it adds up goldman sachs thinks it may have added an additional half a point to growth. now with the market down and the outlook for stocks not as rosie, goldman forecasts that half a point could go away, a head wind to gdp since 2009 household income is up more because that stops in the quarter of 2017. jpmorgan says 3.5 trillion of value has been wiped out in this selloff. you can actually see the w

indexes options can be manipulated and when there were complaints about possible manipulation, the cboethe marketplace should have sprung into action, i think the fact that finra is taking a close look is very important to determine if there has been any manipulation at all. >> harvey, jim cramer, always great to see you, thank you for coming on. one of the things that i'm concerned about, is there a way to make it so institutions can trade maybe off board, some of the pruoducts, but the individuals don't get hurt, they feel like you can't lose money if you short calls on it these are products that should be for the most sophisticated investors. does the sec ever try to find a way to say wow, be careful here. these are not for just the retail investor? >> the s.e.c. has disclosure requirements that should provide investors and particularly individual investors with the kind of information that says you should stay away from this product unless you are very sophisticated. the problem you have is that disclosures are not always made appropriately, at least targeting investors who perhaps

if you look at this cboe contracts friday of credit, there is volatility inside their that spiked up. you are seeing a certain concern. david: one of the areas we focus on is the cpi numbers. they are coming out on wednesday. let me put up a chart. where cpi has been through history and it shows where we are right now. 1.9. the blue line all the way over to the right which is not all that traffic. why are we so worried about inflation? lisa: there is a real tension right now. we are seeing yields rise. the current inflation expectations. are we seeing yields rise because of the increasing deficit and increasing amount of supply in treasuries? this is a big tension. could we see the interest rates spike upward simply due to the deficit? whatever happens with inflation. even if inflation does not pick up dramatically. policymaker tolerance for asset market exuberance drops and inflation is at target. policymakers hands are tied. once inflation is at target, policymakers are more comfortable acting on asset prices that look out of line. is that what we are doing with? gina: i don't think

lets see, combination of higher cboe is what's impacting futures negatively it is the higher inflationhat many macro investors focused on last week. even as consumption slows, it suggests higher rates. >> it is a head win for multiples. >> we forgot ever since this started the amount of money that companies have gotten in because of tax reform is staggering. i keep on hearing the earnings per share is not up. how did pepsico raise the dividend so much and clorox. and apple gave a statement yesterday, we can do anything we want with dividends. the narrative is really this, the companies are making a lot more than we thought what will jay pal do that's becoming this gain that we'll have to play until jay pal does something >> what is endless >> we are trying to push the boulder up and it comes back down the thing that eats our river. >> everything is in play here. >> there are two inflations and lower prices >> right >> when you look at the actual break down and nobody does because it is really boring, maybe leaiesman does it we are betting on fresh eggs, ste again, we got to be worried,

the number we thought most confident about was the 8 billion tied to the cboe vix index. things that struck me yesterday was credit suisse, they had one of these things that they were heavily involved in. they came out and said it will not affect us. what is the involvement of the banks putting these things together with the underlying investment? dakin: the historic stock market highs led to a period of very low volatility for much longer than people expected, that history may suggest. since 2009, when the first product was introduced, wall street has been selling these things to hedge funds, institutional investors, as well as mom-and-pop investors. credit suisse is one of the big issuers of these products. barclays was the pioneer. david:: back to the mortgage backed securities fiasco, one of the problems, people thought the banks would create these and would sell them off but they did not have the same incentive. why isn't there something similar here? why is it good that credit suisse had no skin in the game? dakin: i think they did have skin in the game. certainly,

we'veseen them launch already in the cme and cboe. we had a chance to speak to the ceo of the nyse. not positive words to say about bitcoin, the asset itself what are your thoughts on bitcoin the asset itself, and does that matter what you think of the asset when you're launching a futures contract >> well, i do think it's important that we play an important role in the capital markets and people trust us to understand what we are ultimately going to be offering out to investors so we've been doing a lot of work to understand what is bitcoin or what are cryptocurrencies in general. what's the ecosystem, how is it evolving, who are the biggest players, how resilient is it that's a big part of our education. and it's also the reason why we didn't jump right in to doing a bitcoin future because we wanted to make sure that we really understood, is this an asset class that's sustainable over time and if we're going to be providing it, are we providing something that will last so we are still in that education process, working with clients. we have a great partner that we've been working

drop downed to 36 right now that move i think is very important that we're getting more stability the cboe, which is very influenced by vix products, down a bit today. kbw had a note out that they come from vix options and if us. >> that is down. no down, but they are going to have their earnings out on friday finally what's driving the markets? we emphasized this volatility. it really was very important the market sell-off was not driven by any of the bosch and volatility was the big issue, as the market suddenly dropped, 20, 30, 40, 50, 100 points, nobody had protection when they went toss it people who are market makers jacked the price up that's why the vick went through the roof our question is when will that bid subside a bit. we're starting to see signs of that, but no bottom yet. guys, back to you. >> bob, thank you see very much. some versus hit harder than others for a closer look than stocks that have been harder, let's go down to dominic chu, they slide and then recovery. >> you're making me field at least a bit nauseated, but investors have been probably feeling that way over

. >> we can tell you last week when this market was going nuts the volume on the cboe and vicks optionscords. on february 2, 4 million vicks option trades completed. there's a lot of people in this and is read you a quote last week from one of the guys who started the vicks who said i don't know why we even have this. it's just basically a place where people combat money. you can go to vegas. i don't know. it's going to get some scrutiny. >> i will say, that's the best explanation of what it is. >> did you really understand what i was saying because i'm not sure i did. >> no, i didn't, but it was well presented. >> i did my best. >> do any of you in here know what jeff just said? >> okay, we have more, after this. they're all about me saving for a house, or starting a college fund for my son. actually, i want to know what you're thinking. have a seat. yeah. knowing that the most important goals are yours. with 15,000 financial advisors, it's a big deal. and it's how edward jones makes sense of investing. i want you to pick a new truck for your mom or dad, knowing that they could possibl

this means the chicago stock exchange, cboe, and others that have registered with the s.e.c. since 1996 cannot be first movers in adopting innovative listing standards. the chicago stock exchange has told me, and i quote, this change would remove this current impediment to companies listing their securities on the c.h.x. and would help in the exchange's effort to develop a robust primary listing market here in illinois. end quote. i'm also very supportive of chairman duffy's legislation, the protection of source code act. and i'm an original co-sponsor of that. because i recognize that the entire value of some company -- companies are embodied in their source code. we need to have strong checks in place before our government can demand such information. the chairman of the cftc criticized it. he said, the subpoena process provides property owners with due process of law before the government can seize their property. it protects owners of property, not the government that already has abundant power, end quote. finally, i want to mention my support for the fostering innovation

trip adviser led the week but global cboe dropped 10%. that's a big drop.ility products in the middle of this and are people going to lighten up on them now. >> it's unclear how much was in the middle of it it's clear it was very much in the middle of traders' minds whether it was true it was really the driver, people were concerned about that kind of forced activity. i think a lot of the ingredients you look for when you're trying to match up the market action to the textbook bottoming action were met today you did see this spike in the vix. it came down off its highs. >> we went back up to 40 - >> but you want to see it surge and creates a spike on the chart. that's one ingredient. the intensity of the selling book yesterday afternoon and in the middle of the day today was, i think, the kind of could call climactic. you also did have this report making the rounds. >> jpmorgan. >> they were saying that forced selling activity from the commodity trading advisers, leveraged hedge funds, other types of systematic traders looked like it was just about done i'm

year to date having been up six percent he's a masochist i mean if there were more on futures on the cboehe'd be rich because he himself was the biggest moron of all and then here's another bit going story again you know many governments in the world are trying to protect us from social media they're trying to protect us from twitter they're trying to protect us from facebook. that you should only tune in to m s n b c to get your official democratic news and you should only tune into fox to get your official republican news and don't listen to those ordinary shows out there on twitter and facebook and your like your cousins and uncles don't listen to those people there because their minds might not be able to contemplate and understand fake news because here's another headline poland central bank secretly paid you to burgers to slander kryptos so a polish youtube or with around one million subscribers was paid about thirty thousand dollars by the central bank of poland in collaboration with the polish financial supervision authority to portray crypto currencies and the negative light with

the cboe volatility index is the talk of wall street after this week's record surge.call the fear index was the biggest one day increase since its inception. joining us is dennis devitt, portfolio manager at harvest volatility management and from chicago rick santelli joins us as well. harvest volatility management is a hedge fund asset manager that specializes in volatility? >> yes that's why it's in our name. >> did you get slammed over the last couple of weeks were you short volatility? >> yeah. there's a series of different funds that we run at harvest the majority of which is a short volatility fund. >> how did that do in the last couple of days >> it struggled a little bit but it's come back it's been fine and we'll see what today brings. it looks like we're heading back towards unchanged. >> you must not beleveraged? >> we're not that's the point on the story most people are missing. short volatility is not the story of what happened what really happened here was unrealized leverage, right options are leveraged instruments, and when you package them in an etf a

looking at bitcoin down below $8,000 this morning right now it's sitting at $8,380 at least on the cboe we will continue to track as well. >>> it is ground hog day it looks like we're in for six more weeks of winter. >> ahhhhh! >> he saw his shadow it was raining there. >> what drives me crazy is you're always going to see your shadow with those tv lights on. >> there he is punxsutawney phil. he saw his shadow. >> dilly dilly. >> dilly dilly. >> don't drive angry that has become a classic. the pennsylvania ground hog was wrong last year. but obviously that's not going to disqualify him from being on this show. he did see his shadow, but both february and march were warmer than average across the nation >> again -- >> that was not talking about you, rich. >> the media and the cameras, we mess up our experiment every time with this how can you ever expect any reality when you put all the tv lights on. >> yeah, that's true. >> going to see his shadow every time. >> is bill going to come on this year >> talk with him on sunday. >> because he's going to wear some bell bottoms. trying to brin