The securities and Exchange Commission charged S&P Dow Jones Indices LLC forthwith failing to accurately oversee a volatility-oriented index that landed at the center of market turmoil in February 2018.The civil charge pertains to the S&P 500 VIX Short Term Futures Index, which fed into the Velocity Shares Daily Inverse VIX Short Term Exchange-Traded Note. The once-approved exchange traded note, supervised by Credit Suisse Group AG, left investors with substantial losses during a bout of market volatility.Exchange-traded products based on volatility expanded in popularity over the past decade, and Credit Suisse note, known as ticker XIV, had been a favorite among investors who pursued to profit from a decline in volatility-a profitable but dangerous wager. In February 2018, the note faced large losses as volatility roared back, and the central role that exchange-traded products like XIV played led the period to the called âVolmageddon.â The SECâs latest charges disclosed how the index behind the product was riddled with issues.
Published by
%202.png)
.png)
.png)
Ready to get started?
Start trading with the full package, from state of the art platform to free tool and favorable transaction fees.
All investments involve risks, including the possible loss of capital
ÂŠď¸ MEXEM AFRICA (PTY) LTD (MEXEM AFRICA) is an authorized financial services provider (FSP 48325). All trades on the MEXEM AFRICA platform are subject to the legal terms and conditions to which you agree to be bound.
The MEXEM AFRICA platform enables users to invest in securities. MEXEM AFRICA acts as an agent for the issuance of whole shares, where the investor is the registered owner of those shares, entitled to dividends, participation in corporate actions, and all the economic benefits and risks associated with share ownership.
The availability of any share on the MEXEM AFRICA platform is based on various factors but is not an indication of value and does not mean that any share is an appropriate investment for you. Images are for illustrative purposes only and past performance is not necessarily an indication of future performance.
â
The availability of any share on the browse shares page does not necessarily indicate any contractual relationship between MEXEM AFRICA and the listed company or the payment of fees for services. Brand logos are owned by the respective companies and not by MEXEM AFRICA. The use of a companyâs brand logo does not represent an endorsement of MEXEM AFRICA by the company, nor an endorsement of the company by MEXEM AFRICA, nor does it necessarily imply any contractual relationship. Further investment disclosures are available on the MEXEM AFRICA website.
Read our Forms & Disclosures.
