Credit Suisse to delist exchange-traded note that's up 200% this year

Credit Suisse Group will delist almost $3 billion in exchange-traded notes in a lineup revamp, including a leveraged product that has more than tripled this year.

The $1.5 billion VelocityShares Daily 2x VIX Short-Term ETN (TVIX), which seeks to provide twice the daily return of the S&P 500 VIX Short-Term Futures Index, is among the nine products to be pulled by the firm. The move is part of a “continuing effort to monitor and manage” exchange-traded offerings, Credit Suisse said in a statement Monday.

Most of the ETNs being delisted are leveraged, which means they use derivatives to amplify returns of the securities they track. Those products have come under scrutiny in recent months as the coronavirus roiled markets. Credit Suisse’s move followed similar decisions by UBS Group and Citigroup Inc. to liquidate several of their leveraged commodity ETNs, while other issuers have opted to reduce leverage.

A Credit Suisse spokeswoman declined to comment further.

The delistings will become effective on July 12, and the ETNs may continue to trade on an over-the-counter basis.

Other affected products include:

• VelocityShares 3x Long Gold ETN (UGLD)
• VelocityShares 3x Long Silver ETN (USLV)
• VelocityShares 3x Inverse Gold ETN (DGLD)
• VelocityShares 3x Inverse Silver ETN (DSLV)
• VelocityShares 3x Long Natural Gas ETN (UGAZ)
• VelocityShares 3x Inverse Natural Gas ETN (DGAZ)
• VelocityShares Daily Inverse VIX Medium Term ETN (ZIV)
• VelocityShares VIX Short Term ETN (VIIX)

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