Credit Suisse Group AG is set to close nine out of twelve Exchange-Traded Notes (ETNs) following its acquisition by UBS Group AG (SIX:UBSG). The Swiss banking giant will also delist eight VelocityShares products, which are currently traded over-the-counter. These unsecured debt obligations, collectively valued at less than $50 million, will be settled in cash for the remaining investors.
Despite past controversies, including its role in the 'Volmageddon' episode and the wipeout of its oil note during negative crude prices, Credit Suisse is not completely exiting the ETN market. The bank will continue trading three major ETNs: the $343 million X-Links Crude Oil Shares Covered Call ETN, the $123 million X-Links Silver Shares Covered Call ETN, and the $79 million X-Links Gold Shares Covered Call ETN. These three products constitute most of Credit Suisse's remaining ETN assets.
This development comes as part of a series of changes following UBS Group AG's recent acquisition of Credit Suisse. The move to close and delist a significant number of ETNs is seen as a strategic decision to streamline operations and focus on profitable segments.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.