SEC questions Credit Suisse on the closure of its VelocityShares product

Along with the SEC, Switzerland’s Financial Market Supervisory Authority has also stated it is in contact with Credit Suisse regarding the closure of its product.

On Tuesday, a report by the Wall Street Journal stated that the U.S Securities and Exchange Commission has questioned Credit Suisse regarding the volatility fund that the Swiss bank is terminating following the deep dive of its value in the market rout.

Credit Suisse has announced the liquidation of its VelocityShares product.

WSJ’s report, citing two anonymous sources, said the SEC has question Credit Suisse on details of the investment’s performance and whether retail investors were involved, said a source with knowledge of the matter at hand.

Credit Suisse declined to comment on the report.

Last week, Switzerland’s Financial Market Supervisory Authority also stated it was in contact with Credit Suisse regarding the closure of its product.

Credit Suisse has stated it will shut down its VelocityShares Daily Inverse VIX Short-Term Exchange-Traded Note (ETN), the second largest publicly traded product betting on future swings in the S&P 500, on February 21.

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