Are the Stock Markets heading for massive instability & Crashes? – The ETNS they’re shutting down

(005320.38-:E-003569.93:N-HO:R-SU:C-30:V)   

[I forgot earlier to include the ETNs that Credit Suisse are shutting down immediately. Jan]

Credit Suisse AG Announces Its Intent To Delist And Suspend Further Issuances Of Its VelocitySharesTM ETNs

Credit Suisse AG announced today its intention to delist and suspend further issuances of the following Exchange Traded Notes (the "ETNs"):
New York
22.06.2020

ETN Ticker Exchange CUSIP
VelocitySharesTM 3x Long Gold ETNs linked to the S&P GSCI® Gold Index ER due October 14, 2031 UGLD The Nasdaq Stock Market 22542D316
VelocitySharesTM 3x Long Silver ETNs linked to the S&P GSCI® Silver Index ER due October 14, 2031 USLV
The Nasdaq Stock Market

22542D290

VelocitySharesTM 3x Inverse Gold ETNs linked to the S&P GSCI® Gold Index ER due October 14, 2031 DGLD The Nasdaq Stock Market 22542D670
VelocitySharesTM 3x Inverse Silver ETNs linked to the S&P GSCI® Silver Index ER due October 14, 2031 DSLV The Nasdaq Stock Market 22542D654
VelocitySharesTM 3x Long Natural Gas ETNs linked to the S&P GSCI® Natural Gas Index ER due February 9, 2032 UGAZ
NYSE Arca

22539T183
VelocitySharesTM 3x Inverse Natural Gas ETNs linked to the S&P GSCI® Natural Gas Index ER due February 9, 2032 DGAZ NYSE Arca 22542D282
VelocitySharesTM Daily Inverse VIX Medium Term ETNs linked to the S&P 500 VIX Mid-Term FuturesTM Index due December 4, 2030 ZIV The Nasdaq Stock Market 22542D829
VelocitySharesTM VIX Short Term ETNs linked to the S&P 500 VIX Short-Term FuturesTM Index due December 4, 2030 VIIX The Nasdaq Stock Market 22542D266
VelocitySharesTM Daily 2x VIX Short Term ETNs linked to the S&P 500 VIX Short-Term FuturesTM Index due December 4, 2030 TVIX The Nasdaq Stock Market 22542D258
Only the ETNs listed in the table above are affected by this announcement. For purposes of this announcement, the VelocitySharesTM 3x Long Natural Gas ETNs linked to the S&P GSCI® Natural Gas Index ER due February 9, 2032 and the VelocitySharesTM 3x Inverse Natural Gas ETNs linked to the S&P GSCI® Natural Gas Index ER due February 9, 2032, which are both listed on the NYSE Arca, shall be referred to as the "NYSE ETNs". The remainder of the ETNs listed in the table above, which are listed on The Nasdaq Stock Market, shall be referred to as the "Nasdaq ETNs".

As part of its continuing effort to monitor and manage its suite of exchange traded notes, Credit Suisse AG has decided to delist the foregoing ETNs with a view to better align its product suite with its broader strategic growth plans. Accordingly, Credit Suisse AG anticipates that (x) the NYSE ETNs will continue to trade on NYSE Arca up to and including July 10, 2020 and (y) the Nasdaq ETNs will continue to trade on The Nasdaq Stock Market up to and including July 2, 2020. The delisting of the ETNs will become effective on July 12, 2020. In addition, Credit Suisse AG will suspend further issuances of the NYSE ETNs effective June 22, 2020, and will suspend further issuances of the Nasdaq ETNs effective July 3, 2020.

Following their delisting, the ETNs will remain outstanding, though they will no longer trade on any national securities exchange. The ETNs may trade, if at all, on an over-the-counter basis. Although it is not currently accelerating the ETNs at its option, Credit Suisse AG continues to have the right to do so, as described in the pricing supplement for the ETNs (the “Pricing Supplement”), and may choose to accelerate the ETNs at its option in the future, either together on the same date or each on a separate date, including shortly after the delisting. Subject to the minimum redemption amount and other conditions, investors can continue to exercise their early redemption right with respect to the ETNs prior to, and following, the ETNs’ delisting, pursuant to the terms of the ETNs as described in the Pricing Supplement. If investors wish to exercise their early redemption right, they and their broker must follow the procedures set forth in the Pricing Supplement, which can be accessed on the Securities and Exchange Commission website at www.sec.gov as follows:

As disclosed in the Risk Factors section of the Pricing Supplement, the market value of the ETNs may be influenced by, among other things, the levels of actual and expected supply and demand for the ETNs in the secondary market. It is possible that this announcement and the delisting and suspension of further issuances of the ETNs, as described above, may influence the market value of the ETNs. For example, delisting the ETNs will remove the primary source of liquidity for the ETNs and investors may not be able to sell their ETNs in the secondary market at all. In addition, suspending further issuances of the ETNs may further adversely affect liquidity for any secondary market that may develop following a delisting. Credit Suisse AG cannot predict with certainty what impact, if any, these events will have on the public trading price of the ETNs. Investors are cautioned that paying a premium purchase price over the indicative value of the ETNs could lead to significant losses. An investor that pays a premium for the ETNs, for example, may suffer significant losses if the investor is unable to sell the ETNs in the secondary market, if the investor sells at a time when the premium has declined or is no longer present or if Credit Suisse AG accelerates the ETNs at its option. Even if investors do not pay a premium over the indicative value of the ETNs, investors could still suffer substantial losses because of the illiquidity associated in the secondary market. For instance, investors may not be able to sell the ETNs readily and may suffer substantial losses and/or sell the ETNs at prices substantially less than their intraday indicative value or closing indicative value, including being unable to sell them at all or only sell them for a price of zero in the secondary market.

In addition, as described above, Credit Suisse AG continues to have the right to accelerate the ETNs at its option in the future, either together on the same date or each on a separate date, including shortly after the delisting. If Credit Suisse AG accelerates the ETNs at its option, investors will receive a cash payment per ETN equal to the applicable accelerated redemption amount. Any investors who paid more for their ETNs (including any premium to closing indicative value) than the amount they receive upon an acceleration will suffer a loss on their investment, which could be significant. In addition, investors will not receive any other compensation or amount for the loss of the investment opportunity of holding the ETNs and investors may be unable to invest in other securities with a similar level of risk and/or that provide a similar investment opportunity as the ETNs.

Source: https://www.credit-suisse.com/about-us-news/en/articles/media-releases/credit-suisse-ag-announces-its-intent-to-delist-and-suspend-further-issuances-of-its-velocitysharestm-etns-202006.html