Thursday, November 17, 2016

Leveraged oil ETN is abandoned after trading surge

This year’s transformation of an exchange-traded note tied to oil prices into one of the most active U.S. securities may be short-lived. The VelocityShares 3x Long Crude Oil ETN will be delisted next month from the NYSE Arca exchange by the sponsor, Credit Suisse Group AG, which will stop issuing new securities as well. Daily trading in the ETN, designed to move three times as much each day as an S&P GSCI oil index, averaged 18.2 million for the year through Wednesday -- up more than 16-fold from the same period a year ago.
 

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