I have a question about rates volatility indices and how indexation around this space seems to be fractured and relatively illiquid in comparison to the explosive success of the VIX index in equities.
Is there a simple reason about why there should be a lack of demand or interest for such a product?
Also on a more technical level, I am curious why the MOVE index (which I believe is a simple survey of ATM quotes) has gained more traction than a more intellectually satisfying methodology similar in concept to the VIX (i.e. the replication of a varswap that samples OTM option quotes) such as the now discontinued TYVIX from CBOE.
Is there something about that market that makes market makers less comfortable about transparency in OTM products?