Due to internal company limits on the number of exchange traded notes it can have circulating in securities market, Credit Suisse said Wednesday it has temporarily suspended issuance of the high volatility product VelocityShares Daily 2x VIX Short-Term ETNs.
According to one expert on exchange-traded funds, Morningstar analyst Timothy Strauts, the decision is tied to Credit Suisse’s concerns over hedging tied to such an extremely volatile, highly leveraged product.
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