A report released by the international financial institution which is owned by member central banks suggests that the direction of the VIX index throughout 2023 is not a result of the increasing use of 0DTEs but a function of the increasing number of yield-enhancement products in the market.

The compression of equity market volatility represented by the fall of the VIX index which measures the stock market's expectation of volatility based on S&P 500 index options throughout most of 2023 could have been triggered by option dealers hedging structured products, according to a report released earlier this week by the Bank of International Settlements (BIS). There is a high correlation between flows into structured products selling volatility and VIX dynamics, and a lot of anecdot

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