Whistleblower alleges billions in VIX manipulating indexes, rigging profits

Exchange-traded funds and notes tied to the VIX are worth about $3.5 billion, according to Bloomberg

The claim sounds dubious: the VIX, that index at the center of the stock market's wild gyrations over the past week, is somehow being manipulated.

That allegation, made to federal authorities by an anonymous whistle-blower, captivated Wall Street on Tuesday, prompting both quick dismissals and more than a few raised eyebrows.

Cboe Global Markets Inc, the Chicago-based owner of the VIX, said the idea is preposterous. Many traders agree. Yet, after the burst of volatility and the three swings of more than 1,000 points in the Dow Jones Industrial Average last week, some are asking the question: What if?

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