Here's Who Owned Those Crumbling VIX Notes as of Last FilingBy
The collapse of two inverse exchange-traded products tied to the Cboe Volatility Index, which soared Monday by the most on record, is making many wonder who the holders of these instruments are.
So, according to data compiled by Bloomberg, here’s the answer:
The VelocityShares Daily Inverse VIX Short-Term ETN (ticker XIV) is issued by Credit Suisse, and they’re the biggest holder with 4.8 million shares, or a 32% stake. It’s tumbled to about $15 in the post-market session versus an intraday peak of $118. Credit Suisse spokeswoman Nicole Sharp told Bloomberg in a statement: "The XIV ETN activity is reflective of today’s market volatility. There is no material impact to Credit Suisse."
Other top XIV holders as of September 30 included:
- Deutsche Bank with a 3.8% stake
- Morgan Stanley: 2.6%
- Citadel: 2.6%
- Flow Traders U.S. LLC: 1.9%
- Two Sigma: 1.2%
- CTC LLC: 1.1%
- Keel Point: 0.6%
- Jane Street Group: 0.4%
The ProShares Short VIX Short-Term Futures (ticker SVXY), which plunged in a similar fashion, has Jane Street as its top holder with a 16% stake as of September 30.
- Susquehanna’s next with 10%; other holders at Sept. 30 included
- Credit Suisse at 2.2%
- Virtu Financial: 1.8%
- Power Corp. of Canada: 1.4%
- Morgan Stanley: 1.2%
- Flow Traders U.S.: 1.1%
- Harvard Management: 0.9%
- Goldman Sachs: 0.4%
The pain for those involved could be even greater than it appears given the interpretation of the prospectuses by some traders that the notes could be liquidated.
On the flip side, some of these same banks and funds hold the ProShares Ultra VIX Short-Term Futures (ticker UVXY), a 2x-levered ETP that soared 66 percent today and took another leg up after the bell. Barclays is the top holder with 3.2%, followed by Jane Street, SG Americas, Bank of Montreal, Credit Suisse and Flow Traders U.S.