Mon, Apr 27, 2015
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. U.S. does not want hedge funds to invest in offshore re-insurers for tax purposes[more]

    Komfie Manalo, Opalesque Asia: The U.S. Treasury Department on Thursday introduced a new rule aimed at limiting hedge funds’ ability to reduce their tax bills by investing in insurance companies in offshore tax havens. As a general rule, the U.S. tax laws does not allow hedge funds to use off

  2. Ruling: Hedge funds suing Argentina can have access to bond offering details[more]

    Komfie Manalo, Opalesque Asia: U.S. District Judge Thomas Griesa in Manhattan ruled yesterday that hedge funds are entitled to details of a recent bond offering by Buenos Aires, reports

  3. Hedge funds looking to continue their rally in Q2[more]

    Komfie Manalo, Opalesque Asia: Hedge funds finished the first quarter on a strong note and are looking to continue the rally in the second quarter, said Lyxor Asset Management in its Weekly Brief. The Lyxor Hedge Fund Index is up 0.4% over the week

  4. Hedge funds down -0.17% in March (+1.23%YTD)[more]

    Bailey McCann, Opalesque New York: The hedge fund industry produced an aggregate return of –0.17% in March to end Q1 2015 up 1.23%, compared to the S&P 500 which increased 0.96%, according to the latest data from eVestment. Hedge fund performance returns were mixed in March amid increased equity

  5. Fund managers express concern of overvaluation in both equity and bond markets[more]

    Komfie Manalo, Opalesque Asia: According to the BofA Merrill Lynch Fund Manager Survey, investors see growing overvaluations in both

 

banner