I posted about it after they killed their mkts by quoting vol at 5x50%. Mkts so wide that the arb was gone. Shortly thereafter they took them off the front-end citing regulatory, which was bunk. Regulatory had recently loosened.
A move to the down side in the index I would rather be long correlation, and long dispersion on the upside. So instead of short the 10D combo on the INDU and long 10D combo on 5 street names as mentioned. What do you think about Long the 10D Index Puts and short street puts and short index calls and long street calls. Am I looking at that correctly?
Why did IBKR chose to handle it through their lawyers? Were you co-defendants in the same complaint or something like that?
It’s been 16 years, but no, I don’t think that IB was named. It was a C&D after the arb was crushed. I called IB and they sent two dudes from Winston & Strawn to my condo the next day. IBKR cleared the trades. They did some digging though (OCC lawyers) as they were pushing a case for Pro using RAES as I’d traded for Paloma. I recall that I had received notice of an info-subpoena the next day that had been served to IBKR, so their legal dept was already working on it.