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VelocityShares to Launch Volatility-Related ETNs

Offering 2x leverage linked to the S&P 500 VIX Futures Index, the exchange traded notes are to enable institutional traders to manage their daily equity market trading risks.

VelocityShares LLC, creator of exchange traded funds, yesterday announced the launch of six volatility-related Exchange Traded Notes (ETNs) to be listed on NYSE Arca.

The new VelocityShares ETNs include the first daily inverse and 2x leveraged ETNs linked to the S&P 500 VIX Futures Index. The ETNs will provide institutional traders with an exchange-traded instrument enabling them to manage equity market volatility risks.

"We are committed to developing innovative products for the professional trading community," commented Greg King, CEO of VelocityShares in the release. "This suite of ETNs gives traders their first opportunity to access daily rebalanced leveraged and inverse exposure to an S&P 500 VIX Futures Index via an exchange traded product." Credit Suisse AG is the issuer of the ETNs and VLS Securities LLC, a wholly owned subsidiary of VelocityShares LLC, is marketing the ETNs. The TVIX and TVIZ ETNs allow traders to manage daily trading risks using a 2x leveraged view on the S&P VIX Short-Term Futures Index and S&P 500 VIX Mid-Term Futures Index, respectively, while the XIV and ZIV ETNs enable traders to manage daily trading risks using an inverse position on the direction of the volatility indices. Standard & Poor's Financial Services LLC, a division of the McGraw Hill-Companies, Inc., is the creator of the indices.

The ETNs, and in particular the 2x Long ETNs, are intended to be trading tools for sophisticated investors to manage daily trading risks. Credit Suisse AG has filed a registration statement (including a prospectus) with the SEC.

Ivy is Editor-at-Large for Advanced Trading and Wall Street & Technology. Ivy is responsible for writing in-depth feature articles, daily blogs and news articles with a focus on automated trading in the capital markets. As an industry expert, Ivy has reported on a myriad ... View Full Bio

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