Fidelity halts investor purchases of three volatility-focused ETFs

Customers can sell out of existing positions, but can't buy into the funds, company says.
FEB 09, 2018
By  Bloomberg

Fidelity Investments is halting investor purchases of three volatility-focused exchange-traded funds to protect customers from outsized risk. The products are: ProShares Short VIX Short-Term Futures, VelocityShares Daily Inverse VIX Short-Term ETN, and VelocityShares Daily Inverse VIX Medium Term ETN. (More: Exchange-traded notes add another layer of risk) The ban started Tuesday, said Robert Beauregard, a company spokesman. "We are allowing customers to sell out of existing positions, but no one can buy into them," he said. The Financial Times earlier reported on the ban. (More: Wall Street's volatility time bomb)

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