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.
"Trading is halted pending the release of material news," according to NASDAQ.
Unfortunately, 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.
The White Law Group is investigating potential claims involving brokerage firms who may have recommended high risk ETNs like VelocityShares Daily Inverse VIX Short Term ETNs.
An exchange-traded note (NYSE:ETN) is a senior, unsecured, unsubordinated debt security issued by an underwriting bank. ETNs have a maturity date and are backed only by the credit of the issuer, similar to other debt securities. 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.
If you have suffered losses investing in VelocityShares Daily Inverse VIX Short Term ETNs, the securities attorneys of The White Law Group may be able to help you. Please call the firm at 888-637-5510 for a free consultation with a securities attorney.
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, please visit http://www.whitesecuritieslaw.com.
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.