[ganeshkrishnan]

This probably spiked the VIX The fear index went up like crazy

[drchiu]

Was 35 I think. They temporary halted inverse derivatives like SVXY.

[daxorid]

I highly doubt the halt will be very temporary. SVXY and XIV are undergoing forced unwinds after-hours and will very likely be terminated. XIV in particular terminates at an 80% position loss, per its prospectus.

[cm2187]

Actually the intraday indicative value, i.e. the value of the underlying VIX strategy has to go down by 80%, not the market price of the ETN.

Though right now I think we are close. The ticker is XIVIV. I just closed my bbg but I think we were pretty much there. I don't know if non standard trading hours matter though.

The trade was too crowded. Too many people shorting the VIX without looking at the risks. This ETN lost 80% of its value in a matter of days in 2011, and tanked 40% intraday in Aug 2015. It is too easy to forget the risks.

[daxorid]

Yes, well, they just posted a CIV/NAV of $4.22, so that's probably the end :)

http://www.velocitysharesetns.com/xiv

[Hasz]

Credit Suisse is not obligated too, but it's likely they will.

[marshray]

Even if it's all by the contract, one would suppose an issuer would think very hard before doing that. It could taint their brand, their other leveraged ETFs, or even bring down more regulations.

[cm2187]

Barclays did that I think in 2011. Their ETN was badly designed, the termination event was based on an absolute $ price, not a % movement.

[Hasz]

VIX rolled off ~75%. It's insane.