The White Law Group is continues to investigate the liability that brokerage firms may have for recommending high risk ETNs like VelocityShares Daily Inverse VIX Short Term ETNs.
Trading in VelocityShares Daily Inverse VIX Short Term ETNs was halted on Tuesday, along with two other U.S. listed inverse VIX ETFs, after suffering severe losses on Monday.
According to NASDAQ, “Trading is halted pending the release of material news.” A short sell restriction was placed on them, according to Thomson Reuters data.
The spike in the VIX gauge of U.S. stocks volatility (.VIX) sent the VelocityShares Daily Inverse VIX Short-Term ETN down 84 percent in after-hours trading, according to various reports.
Credit Suisse AG is the issuer of VelocityShares Daily Inverse VIX Short Term ETNs.
Risks of Exchange-Traded Notes
An exchange-traded note (ETN) is a senior, unsecured, unsubordinated debt security issued by an underwriting bank. Similar to other debt securities, ETNs have a maturity date and are backed only by the credit of the issuer. ETNs are designed to provide investors access to the returns of various market benchmarks.
VelocityShares Daily Inverse VIX Short Term ETNs offers leveraged exposure to VIX contracts; Each ETN is linked to either the S&P 500 VIX Short-Term Futures Index or the S&P 500 Mid-Term Futures Index.
These ETNs may not be suitable for investors who plan to hold them for a period other than one day. They are riskier than securities that have intermediate- or long-term investment objectives, according to their website.
Have you suffered losses investing in VelocityShares Daily Inverse VIX Short Term ETNs? If so, the securities attorneys of The White Law Group may be able to help you recover your losses. For a free consultation, please call the firm at 888-637-5510.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.
For more information on The White Law Group, visit http://www.whitesecuritieslaw.com.