If you have suffered losses in Credit Suisse's VelocityShares Daily 2x VIX Short-Term ETN ("TVIX") that were recommended by a broker or financial adviser, you may be able to recover your losses through FINRA arbitration.
The TVIX is an exchange traded note ("ETN") that was designed to track an an index that is linked to the the Chicago Board Options Exchange Volatility Index (also known as the "VIX"). This ETN was designed to deliver returns that are double (2x) the daily direction of the VIX. Investors use the TVIX to hedge stock portfolios.
Since 2009, various VIX ETNs have become available to retail traders, expanding a space that was previously reserved for more sophisticated and insitutional traders.
Like stocks or other exchange-traded funds, the TVIX ETNs trade on the open market. However, these are actually debt-backed securities collaterialized by the credit of the issuer, which in the case of TVIX is Credit Suisse.
On February 21, 2012, Credit Suisse announced that it had temporarily suspended the VelocityShares Daily 2x VIX Short-Term ETNs (TVIX) ETNs from further issuance due to interal limits on the size of the ETNs. According to Credit Suisse, this suspension of new TVIX shares triggered an imbalance in the market, which resulted in VelocityShares Daily 2x VIX Short-Term ETNs (TVIX) trading at a significant premium to its intrinsic value (the VIX index that it was designed to track).
On March 22, 2012, Credit Suisse announced that it would issue more shares of the TVIX leveraged exchange-traded note following a month suspension. However, the damage to investors may be done. Investors, who bought the Credit Suisse VelocityShares Daily 2x VIX Short-Term ETNs (TVIX) to profit from rising volatility, are believed to have lost about $340 million when it dropped more than 50 percent. The plunge began even before Credit Suisse announced on the evening of March 22, 2012 that it would resume issuing shares.
Eccleston Law represents individual and institutional investors nationwide to recover their investment losses caused by unsuitable investment recommendations, breach of fiduciary duty, negligence or other misconduct. We have extensive experience representing investors in arbitration and litigation disputes with securities broker-dealers and investment advisory firms, and have recovered tens of millions of dollars for investors.
If you are an investor that has suffered substantial losses investing in a leveraged exchange-traded note such as the Credit Suisse VelocityShares Daily 2x VIX Short-Term ETNs (TVIX) that was recommended by a broker or financial adviser, your losses may be recoverable through securities arbitration. Please contact one of the attorneys at Eccleston Law Offices at 312-332-0000 to discuss your recovery options.