XIV Lawsuit Shows Peril That Lurks Within Democratized Investing
- Claim against Credit Suisse shows price of investor access
- ETP industry is reconsidering disclosure at issuance and sale
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XIV, the now infamous exchange-traded note that imploded last month, is dead and buried. But its legacy lives on in the court system.
Credit Suisse Group AG, which issued the derivative-based product, was sued this week by an investor accusing the Swiss bank of failing to disclose manipulation. The case follows several suits that allege unknown parties manipulated instruments linked to volatility futures.