Sat, Apr 30, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Several regulators are enquiring Credit Suisse ETN’s sudden plunge

Thursday, April 05, 2012

Benedicte Gravrand, Opalesque Geneva: FINRA, the Securities and Exchange Commission (SEC) and Massachusetts’s regulator are investigating Credit Suisse, the global private and investment bank headquartered in Zurich, about exchange-traded notes (ETN) that it re-issued last month.

Massachusetts's William Galvin asked Credit Suisse on March 23 for information on all purchases of the Credit Suisse-managed VelocityShares 2x Long VIX Short Term Exchange note (TVIX) from Feb. 20 to March 23, and said he wants to know why the bank re-issued the ETN on March 23. Credit Suisse has until April 5 to provide the information.

Indeed, on March 22, 2012, Credit Suisse announced its plans to reopen issuance of the TVIX on a limited basis. The bank had temporarily suspended further issuance of these ETNs on February 21 due to internal limits on the size of the ETNs. "At present, the ETNs are trading at a premium to their indicative value," said the announcement. Although apparently, the notes had began dropping on March 20, after having climbed to 134% more than its index during the previous three weeks.

The note, which is designed to track stock-market volatility, plunged that week, even though market volatility was little changed, Dow Jones ......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Hedge funds see $14.3bn outflows in Q1, CTAs and multi-strategy lead net inflows[more]

    Komfie Manalo, Opalesque Asia: The hedge fund industry saw net outflows of investor capital in the first quarter of the year, totaling $14.3bn, data from Preqin showed. This continues from the $8.9bn overall net outflows that funds recorded in Q4

  2. Third Point calls Q1 "catastrophic" for hedge funds[more]

    Bailey McCann, Opalesque New York: The first quarter of this year was rocky for hedge funds based on aggregate performance from the industry, but now we are beginning to hear what the managers thought of it as quarterly letters make their way to investors. Dan Loeb, CEO of New York-based $17 bill

  3. Asia - Stabilization of China's capital outflows may hinge on Janet Yellen, Fink says China to do well this year as bubble threat postponed, Chinese hedge fund to invest in India’s infrastructure[more]

    Stabilization of China's capital outflows may hinge on Janet Yellen From Bloomberg.com: Whether China’s recent stabilization of its currency and capital outflows continues -- or downside pressure reignites -- may hinge in large part on Janet Yellen. If the Federal Reserve chair sticks to

  4. …And Finally - After all, judges are human too[more]

    From Newsoftheweird.com: In March, one District of Columbia government administrative law judge was charged with misdemeanor assault on another. Judge Sharon Goodie said she wanted to give Judge Joan Davenport some files, but Davenport, in her office, would not answer the door. Goodie said once the

  5. Comment - Unmasking the men behind Zero Hedge, Wall Street's renegade blog[more]

    From Bloomberg.com: Colin Lokey, also known as "Tyler Durden," is breaking the first rule of Fight Club: You do not talk about Fight Club. He’s also breaking the second rule of Fight Club. (See the first rule.) After more than a year writing for the financial website Zero Hedge under the n