ZURICH (Reuters) - Credit Suisse (S:CSGN) has been questioned by the U.S. markets watchdog about the volatility fund that the Swiss bank is terminating after its value plunged, the Wall Street Journal reported on Tuesday.
The U.S. Securities and Exchange Commission called Credit Suisse last Tuesday, the day after the market rout that prompted the bank to announce liquidation of its VelocityShares (P:XIV) product, the paper said.
The agency questioned the bank about the product, the Journal wrote, citing two unidentified sources. Regulatory officials asked how the investment's performance was calculated and whether retail investors were involved, it quoted one of the sources as saying.
Credit Suisse declined to comment on the report.
Switzerland's Financial Market Supervisory Authority said last week that it was in contact with Credit Suisse regarding the product launched in 2010.
Credit Suisse has said it would shut down its VelocityShares Daily Inverse VIX Short-Term Exchange-Traded Note (ETN) -- the second-largest publicly traded product betting on future swings in the S&P 500 -- on Feb. 21.
Last week's global market turmoil has shone a light on U.S. and European-listed complex trading instruments, which some investors blame for the scale of the disruption.
