- Credit Suisse (SIX:CSGN) (CS -1.6%) will end trading in its inverse volatility ETN, the VelocityShares Daily Inverse VIX Short-Term (NASDAQ:XIV), after an 84% collapse that halted trading in the notes.
- The last day of trading for the security is Feb. 20, the bank says.
- It was intended to track calm markets by giving the opposite return of the VIX volatility index, but broke down along with similar instruments as volatility blew up late yesterday.
- CS made the move since the intraday indicative value off XIV was 20% or less of the prior day's closing indicative value, which created an acceleration event.
- The decline has no "material impact" on the bank itself, Credit Suisse said last night; CS shares have opened lower along with the broader market.
- Previously: VIX pushes past 50; Credit Suisse mulls redemption of XIV (Feb. 06 2018)
- ETFs: VXX, UVXY, XIV, TVIX, SVXY, VIXY, ZIV, VXZ, VIXM, VMAX, VMIN, VIIX, CVOL, XVZ, TVIZ, XXV, IVOP, VIIZ
- Now read: Don't Buy XIV Here
Original article