Below is an announcement by Credit Suisse of ETNs (Exchange Traded Notes) that they’re shutting down. I am not going to go into detail but ETNS/ETFS are special "mechanisms" that use computers in order to mimic other financial instruments, like the price of Gold.
So you get ETNs/ETFs that mimic 2x and 3x the price movements of Gold, Gas, Silver, Stock Markets, Indexes, etc.
All of a sudden, out of the blue Credit Suisse has announced that it is shutting down several of its ITNS, without any further notice.
I asked an American pal of mine who had been a trader on Wall St 25+ years ago what was happening. His reply made for some interesting twists. This is what he wrote:
That they are closing down those very active ETFs must mean the ‘area’ had to be vacated. Fireworks coming?
OTC is not for quick trading, if anything at all.
NUGT, DUST, JNUG, JDST have been converted from 3x to 2x, likely because of increased volatility.
Things are heating up here. "Interesting Times."