February 6, 2018 Comments (0) Blog, Current Investigations

VelocityShares Daily Inverse VIX Short Term ETNs – Trading Halted

VelocityShares Daily Inverse VIX Short Term ETNs

Investment Losses in VelocityShares Daily Inverse VIX Short Term ETNs

Did you lose money 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 by filing a  FINRA Arbitration claim against the brokerage firm that sold you the investment.

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. A short sell restriction was placed on them, according to Thomson Reuters data.

According to NASDAQ, “Trading is halted pending the release of material news.”

Apparently 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.

VelocityShares Daily Inverse VIX Short Term ETNs are issued by Credit Suisse AG.

Investigating Potential Claims –  Exchange Traded Notes

The White Law Group is currently investigating the liability that brokerage firms may have for recommending complex and risky ETNs like VelocityShares Daily Inverse VIX Short Term ETNs.

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 are riskier than securities that have intermediate- or long-term investment objectives, and may not be suitable for investors who plan to hold them for a period other than one day, according to their website.

FINRA and the SEC have been increasing their efforts to regulate nontraditional ETFs and ETNs such as VelocityShares Daily Inverse VIX Short Term ETNs, and to monitor the manner in which these products are marketed and sold to the investing public.

If you lost money investing in VelocityShares Daily Inverse VIX Short Term ETNs, the securities attorneys of The White Law Group may be able to help.  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.  The firm exclusively represents investors in FINRA arbitration claims against their brokerage firm or financial professional.

For more information on The White Law Group, visit http://www.whitesecuritieslaw.com.