Credit Suisse Group AG moved to redeem its VelocityShares Daily Inverse VIX Short Term exchange-traded notes after their intraday indicative value on Feb. 5 reached 20% of the prior day's closing indicative value, $108.3681 on Feb. 2.
The last day of trading for the ETNs is expected to be Feb. 20.
With the bank declaring an acceleration event, the notes are expected to be irrevocably called Feb. 15. The date will also constitute the accelerated valuation date, subject to postponement due to certain events. The acceleration date is expected to be three business days after the accelerated valuation date, on Feb. 21.
Investors will receive a cash payment on the acceleration date of an amount equal to the closing indicative value on the accelerated valuation date, the bank said.
"The XIV ETN activity is reflective of today's market volatility. There is no material impact to Credit Suisse," a spokesman said, according to a Feb. 6 Reuters report.
The bank also confirmed that its other ETNs are not affected.
