Mon, Oct 23, 2017
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. Regulatory - David Stockman: Trump tax reform overhaul is a pipe dream, stocks are heading for 40-70% plunge, Carried interest tax: How much does it matter?, Odey sees 'terrifying' mix in MiFID, tapering, asset values, Hedge funds come together to share cost of MiFID and research, SEC turns up the heat on U.S. investment advisers, India's Sebi asks hedge funds to report investments in commodity derivatives[more]

    David Stockman: Trump tax reform overhaul is a pipe dream, stocks are heading for 40-70% plunge From CNBC.com: David Stockman is warning about the Trump administration's tax overhaul plan, Federal Reserve policy, saying they could play into a severe stock market sell-off. Stockman, the R

  2. North America - Puerto Rico rejects loan offers, accusing hedge funds of trying to profit off hurricanes[more]

    From TheIintercept.com: Puerto Rico has rejected a bondholder group's offer to issue the territory additional debt as a response to the devastation of Hurricane Maria. Officials with Puerto Rico's Fiscal Agency and Financial Advisory Authority said the offer was "not viable" and would harm the islan

  3. Investing - WPP targeted by short-selling American hedge fund, Sun co-founder sells secretive hedge fund on big chip trade[more]

    WPP targeted by short-selling American hedge fund From Cityam.com: An American hedge fund has mounted a bet against WPP, the world's largest advertising group, with a trade worth almost £90m. Lone Pine Capital has built a short position worth 0.51 per cent of the FTSE 100 company,

  4. Hedge funds up as industry adjusts to rising rates[more]

    Komfie Manalo, Opalesque Asia: Hedge funds have reshuffled their portfolio after nearly four weeks of rising rates as the Lyxor Hedge Fund Index was up +0.2% from 19 September to 26 (+1.1% YTD), fuelled by strong results of global macro funds, Lyxor Ass

  5. Manager Profile - How the world's hedge fund king used 'idea meritocracy' to become a billionaire[more]

    From Forbes.com: In 1982, Ray Dalio made what he calls the biggest mistake of his life. He made a bet that there would be an economic collapse stemming from a debt crisis. And he was wrong. He lost money. He lost his client's money. He had to let people go from his firm and borrow money from his dad