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VelocityShares Daily Inverse VIX Short Term ETNs


Levi & Korsinsky, LLP Announces Investigation

Date: 2/14/2018

Source: Levi & Korsinsky, LLP

Levi & Korsinsky announces it has commenced an investigation concerning Credit Suisse Group AG’s VelocityShares Daily Inverse VIX Short Term ETNs (NASDAQGM: XIV) recommended by full-service brokerage firms and advisors. On February 6, 2018, Credit Suisse announced an event acceleration of XIV due to an acceleration event. Following this news, XIV fell from a close of $99 on February 5, 2018, to a close of $7.35 on February 6, 2018.

To receive more information regarding the investigation of XIV please fill out the form to the right.


Is XIV Manipulated or Hedged

Date: 2/14/2018

Source: Bloomberg

Last Monday VIX futures went up during the day, and then at the close they went up a whole lot: People were piling into the market to buy VIX futures right at the last minute. This caused the price of VIX futures to spike, and they closed at a price well above where they had traded during the day (or during the previous year for that matter). That price was also higher than where they opened the next day, or where they have traded since. The single worst time to buy VIX futures in the last five years was at the close last Monday. That is also when the value of the XIV… read more


Credit Suisse CEO: ‘It worked well for a long time until it didn’t’

Date: 2/14/2018

Source: CNBC

On Monday last week, as markets sold off and the Dow Jones industrial average plunged nearly 1,600 points, many analysts pointed to the XIV, which was operated by Credit Suisse, as having amplified selling.

The XIV stands for the VelocityShares Daily Inverse VIX Short-Term exchange-traded note (ETN). The product, of which Credit Suisse 32 percent, shorts volatility by betting on calm market conditions. It became one of the most popular trades of the past year as volatility in the Cboe Volatility Index (VIX) — a fear gauge for the stock market — reached historic lows… read more


Credit Suisse inverse vix ETN XIV was worth over 1.5billion on Monday

Date: 2/8/2018

Source: Investment Watch Blog

Anyone holding XIV Tuesday morning lost like 96% of their investment. Credit Suisse claims to have been fully hedged, meaning it was a wash. CS announced Tuesday morning an event acceleration of the ETN, meaning next week it will no longer exist, and they will pay out the calculated NAV value just before that…which will be pretty much 96% or less of the closing value Monday… read more


How Credit Suisse Blew Up the (XIV)

Date: 2/8/2018

Source: The Mesh Report

I feel like I have been robbed, and then robbed again. I received notice today from Credit Suisse, the issuer of the Velocity Shares Daily Inverse VIX Short term ETN (XIV), that it is resorting to a forced liquidation of the fund (see note from the company below). All investors will receive cash value for their holdings sometime after February 20. The last NAV they had on their screen was $4.00 a share, compared to the previous day’s close of $99.00. (XIV) is currently trading at $6.50.

Credit Suisse has the right to commit this theft thanks to a “poison pill” provision buried in the prospectus. This provides for a forced call of the shares during any single 80% decline of the net asset value in a single day… read more


The Astonishing Story Behind What Really Happened to XIV

Date: 2/6/2017

Source: cmlviz.com

During the market’s closing hour on Monday, February 5th, some sort of “flash crash,” likely triggered by margin calls, attacked the CBOE Volatility Index (INDEXCBOE:VIX), also known as the “fear index.” Whatever it was, the VIX went from 17% to 37% in a matter of two-hours, or up 115%. That is the largest percentage gain in the VIX in one day ever recorded.

Even then, while that is a huge move, it wasn’t really market disruptive in any great way other than, the market had a bad day. But then the after hours margin calls came in — and that was an unmitigated disaster for one particular instrument of interest to us: Credit Suisse AG – VelocityShares Daily Inverse VIX Short Term ETN (NASDAQ:XIV)… read more



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Levi & Korsinsky, LLP does not share your information with others. There is no cost or obligation for you to submit.

This submission does not create an attorney-client relationship. We will keep you up to date with this investigation, and should this investigation evolve, we will contact you to discuss whether to establish an attorney client relationship at no cost to you.