Article: S&P Settles SEC’s Stale Valuation Charges

Article - Media, Publications

S&P Settles SEC’s Stale
Valuation Charges

Credit Suisse
Alicia McElhaney, 17 May 2021

S&P Dow Jones Indices has settled with the SEC over charges that it published stale valuations of a volatility-related index.

The Securities and Exchange Commission announced Monday that S&P had agreed to pay a $9 million fine without admitting or denying the SEC’s findings.

The regulator’s charges had centered on the S&P 500 VIX Short Term Futures Index ER, a volatility-tracking product that S&P licensed to certain issuers, including Credit Suisse, which used the S&P product for an exchange-traded note that tracked the index. Continue reading “Article: S&P Settles SEC’s Stale Valuation Charges”

Article: Market Manipulation Case Reopening Adds to Credit Suisse’s Woes

Article - Media, Publications

Market Manipulation Case Reopening Adds to Credit Suisse’s Woes

Alicia McElhaney, 28 April 2021

Although appellate court judges threw out some claims against the bank, they said that market manipulation allegations were “plausible.”

Credit Suisse is having another rough week.

A U.S. Appeals Court reopened a 2018 case alleging that Credit Suisse had engaged in market manipulation of some exchange-traded notes that short the VIX, a popular proxy for volatility. Continue reading “Article: Market Manipulation Case Reopening Adds to Credit Suisse’s Woes”

Article: Credit Suisse Must Face Suit Over Failed Play on Fear Index

Article - Media, Publications

Credit Suisse Must Face Suit Over Failed Play on Fear Index/strong>

Bob Van Voris, 27 April 2021

Credit Suisse Group AG must face allegations that it engineered a complex fraud to sink an investment vehicle and profit on investors’ losses, after an appeals court revived the claims.

The lawsuit, filed in 2018, claimed investors lost $1.8 billion in the Feb. 5, 2018, collapse of the market for VelocityShares Daily Inverse VIX Short Term Exchange Traded Notes, known as “XIV Notes,” a derivative investment that increased in value when the stock market was calm and decreased when it was volatile. Continue reading “Article: Credit Suisse Must Face Suit Over Failed Play on Fear Index”