February 7, 2018 / 5:15 PM / a year ago

Swiss watchdog in touch with Credit Suisse over volatility ETN

ZURICH, Feb 7 (Reuters) - Switzerland’s Financial Market Supervisory Authority on Wednesday said it was in contact with Credit Suisse regarding a product linked to market volatility.

Switzerland’s second-biggest bank said on Tuesday it would terminate the second-largest publicly traded product betting on future swings in the S&P 500 after its value plunged during a global market rout.

“We’re in contact with the bank regarding the matter,” FINMA said in an emailed statement, adding it would not be commenting further on the issue.

Monday’s equity market selloff triggered the termination of the bank’s VelocityShares Daily Inverse VIX Short-Term Exchange-Traded Note (ETN), which tracks financial instruments that effectively bet against a fall in markets. It will stop trading by Feb. 20.‍​ (Reporting by John O’Donnell; writing by Brenna Hughes Neghaiwi; editing by Michael Shields)

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