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At least publically the financial industry has not moved on to better models, probably because no alternative has been accepted as superior.The IssueMy interest in this area stems from the frequent use of sigma notation by commenters when the market experiences big swings. For example, there was a multi day 10 sigma increase in the value of the VIX index associated with the August 2015 correction and an 8 sigma single day downswing a couple of weeks later.The term "sigma" is equivalent to the statistical term "standard deviation", one of the two key descriptors in a normal distribution (the other is the mean or average). Sigma can be used as a shorthand way of indicating the relative magnitude of a market move.
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