VelocityShares Credit Suisse 3X Long Crude ETN (UWTIF)

[Renee]

UWTIF: Per Credit Suisse notice on 4/21/2020, "...Closing Indicative Value of the ETNs will be $0 on April 21, 2020 and on all future days, investors who buy the ETNs at any time at any price above $0 will likely suffer a complete loss of their investment."

https://otce.finra.org/otce/dailyList?viewType=Deletions

[JohnCM]

Overview

The MicroSectors™ U.S. Big Oil Index Exchange Traded Notes (ETNs) are linked to the
performance of the Solactive MicroSectors™ U.S. Big Oil Index.

Each ETN offers investors
a return based on changes in the level of the Solactive MicroSectors™ U.S. Big Oil Index
on a daily compounded basis, before taking into account fees.

Each ETN has a specified
leverage factor that is reset daily. This fact sheet relates to separate ETN offerings.

Each
issue of the ETNs is linked to one, and only one, ETN below.
Each ETN seeks a return on the underlying index for a single day. The ETNs are not “buy
and hold” investments and should not be expected to provide its respective return of
the underlying index’s cumulative return for periods greater than a day.

What Is the Solactive MicroSectors™ U.S. Big Oil Index

The Solactive MicroSectors™ U.S. Big Oil Index includes the 10 U.S. stocks in the energy sector (specified below) with the largest free-float market capitalization.

The index’s underlying composition is equally weighted across all stocks. While the performance of indices weighted by market capitalization can be dominated
by a few of the largest stocks.

SOLACTIVE MICROSECTORS™ U.S. BIG OIL INDEX COMPONENTS*

*Index rebalanced to equal 10% weights monthly.

10% Marathon
10% Phillips 66
10% Valero
10% Pioneer
10% Hess
10% Exxon Mobil
10% Chevron
10% EOG
10% Occidental
10% ConocoPhillips

[Lowjack]

NRGU is showing the market pop due to the GILD news.

Should come back in.

Still early for the SA play.

[JohnCM]

CRUDE $30 to $20 and get a hold of this BULL ETN.

[JohnCM]

UWTIF

CREDIT SUISSE AG NASSAU BRANCH

$9.57
-$0.58
(-5.71%)
Bid
9.55 x 419
Ask
9.92 x 8000
Volume
30,467
Less Quote Info
Day Range
9.5010.25
52-Week Range
4.0024.60
Previous Close
$10.15
Open
$10.25
90-Day Avg. Vol
30,778
D
Ex-Dividend
--
E
Earnings

[JohnCM]

OLD

The Oil Bet Of UWTI(F): A Fool And His Money

December 09, 2016

Dave Nadig

I’ll admit it: I just had to be a part of it. We’ve covered here, over and over again, the pending demise of the VelocityShares triple leveraged oil ETNs backed by Credit Suisse: the VelocityShares 3x Long Crude Oil ETN (UWTI) and the VelocityShares 3X Inverse Crude Oil ETN (DWTI).

I wanted to have firsthand experience of what it was like to be an investor in one of these products during what has to be the most bizarre two days in ETF history. Here’s how I managed to throw $50 away in the process.

We first heard that UWTI was delisting these funds back on Nov. 17. Earlier this week, I was curious if I could still buy them. So on Dec. 6, I went to my brokerage account, and put in a marketable limit order for 10 shares of UWTI, the larger of the two, with $662 million in assets as of this morning. I didn’t receive any note about the pending delisting. However, I did get a note about how leveraged and inverse funds are risky and not for long-term investing. I paid my $9 commission and got a fill at $24.64.

Yesterday, knowing with absolute certainty that I was pointing a gun at my own head, I watched as the market closed, and then kept checking my account to see if anyone was going to let me know it was delisting. I received no emails or alerts.

In fact, I was half expecting to get a note from Credit Suisse letting me know it would indeed be calling my exchange-traded note shares, and giving me my money back (which has been the case in almost every other ETN delisting in history). Alas, no note has come.

The Story Gets Weirder

At 9:30 this morning, I logged back in to my account, curious what would have happened. A few things:

1) The ticker for UWTI had changed to UWTIF, and was now listed as OTC, or “over the counter.” That means that if I wanted to sell it, I would have to go to a different market: the OTCBB or pink sheets.

2) In a bizarre twist, overnight, VelocityShares (which is fundamentally just a marketing agent for these products) had found a new bank to replace the 3X oil products: Citi. At 9:30 a.m., two brand-new, technically unrelated securities, with the tickers VelocityShares 3x Long Crude Oil ETN (UWT) and the VelocityShares 3x Inverse Crude Oil ETN (DWT), were trading, providing essentially the exact same exposure as the now delisted UWTI(F) and DWTI(F), just 15 basis points more expensive.

Human Intervention

So, putting myself in the shoes of a normal non-ETF-nerd consumer, I did what I thought I should do, and called my broker. I contacted someone extremely nice on the phone immediately, and here’s the transcript of my conversation.

Me: “Hi there. I bought a small speculative position earlier this week, and now I find that it got delisted.”

Broker Dude: “It looks like we received notification of delisting last week. I can see if we sent out any notifications. Please hold.”

“Last week?” I thought? “This thing’s been on the delisting block since before Thanksgiving!” My very nice broker dude comes back …

Broker Dude: “When you went to buy it, was there any block that said ‘this is being delisted?’”

Me: “Nope, not that I can recall. Did you send out any sort of notice to people holding this thing?”

Broker Dude: “If you were a holder before we got the delisting notice, we would have forwarded you the delisting notice, but we didn’t send another one out yesterday.”

Me: “What do I do now? Can I sell it?”

Broker Dude: “Yes. Although right now, there’s no market [9:50 a.m.]. But you can put in the order and see what happens.”

Actually Selling

It became clear to me that this was pretty much the end of the line, so I decided I should at least try and get rid of this position. I popped open my Bloomberg and wondered if I could still get an intraday net asset value for the now-delisted UWTIF—it turns out you can, but the ticker there didn’t change.

In Bloomberg, the ticker remans “UWTIIV.” On most brokerage platforms, it remains “UWTI.IV.” Not exactly obvious if you’ve come to understand that the ticker itself now has that pesky “F” in it. The fair value was showing $25.50.

A quick look at the trading tape showed that not only was UWTIF trading, it was trading a lot. Almost 400,000 shares had traded by 9:50 ET this morning, more than 10x the amount that had traded in newly listed Citi-backed UWT. I took my medicine and put in an order, and got a fill, at $23.01, 10% below fair value.

In Memoriam

As of this writing, Credit Suisse still hasn’t suggested it’ll ever call these ETNs, which means selling in the open market at a huge discount is likely the only option for holders who woke up like me this morning: holding and dumb.

Someone on the other side of these trades is taking a risk—that they can roll up multiples of 25,000 shares and present them for redemption, and book the arbitrage between fair value and the discount they bought at. It’s a real risk, and one they should be compensated for.

In the meantime, there are roughly $573 million in idiots like me out there sitting on the other side, wondering which tickers mean what, and how to navigate the system with the least amount of pain.

All of the pieces of the system here, the plumbing, are in fact working as intended. But sometimes that system isn’t particularly pretty or investor friendly.

[JohnCM]

Taking another look at this.

NRGU is not acting right.

[JohnCM]

Head over to
Crude Oil Discussion Board
and give me your 52 week low projection.

Thanks!!

[Lowjack]

DownWave 5 yet to come!

History repeating itself!
https://en.wikipedia.org/wiki/1999_world_oil_market_chronology

BlackHole breakdown!

iShares MSCI Saudi Arabia ETF KSA
https://investorshub.advfn.com/iShares-MSCI-Saudi-Arabia-ETF-KSA-KSA-37737/

[JohnCM]

Story found on discussion board ETF ETN 1X 2X 3X

Leverage Bullish Oil ETN Gets An Upsizing As Crude Prices Falter

Todd Shriber, ETF Professor
Benzinga
March 27, 2020

Leverage Bullish Oil ETN Gets An Upsizing As Crude Prices Falter
Oil is one of this year's worst-performing commodities and the energy sector is the worst-performing group in the S&P 500, a combination that would appear to encourage traders from making bullish bets on energy equities.

See More

[JohnCM]

VelocityShares 3x Long Crude Oil ETN Linked to the S&P GSCI® Crude Oil Index ER (UWTIF)

$7.42

As of Mar 27 +0.42 +6.00%

Looks like this one was saved.

[JohnCM]

Completed list of updated ETF ETN funds including new closures

Addition of BULL crude oil

Can be found at ETF ETN 1X 2X 3X discussion board

[JohnCM]

We need someone to step in between Russia and Saudis Arabia. They are engaged in a pissing contest right in the middle of a worldwide pandemic. Nice ...

[Lowjack]

If he does, it won't be soon.
I'd have to drive for 30 min to get a hold of Mr. Valentine for the correct price.

[JohnCM]

Big news. U.S. may intervene.
Crude up big!!

[JohnCM]

WOW!!!

Looks like the cannabis sector in flash mode.

[Lowjack]

http://stockcharts.com/c-sc/sc?s=%24WTIC&p=D&b=5&g=0&i=p72750447871&r=1455692768746

[JohnCM]

Weird. I do not see that UWTIF is an active fund. But you have an active chart?????

[JohnCM]

I am PO'd at Russia and Saudi Arabia! They are having a difference of opinion during a worldwide epidemic?

I thought Putin was the president's bud? They have got to agree to cut supply. We need $50.00 oil.

Ridiculous!!

[Lowjack]

Could see single digit oil!

Target is -25 to -40% of Global GDP!

[JohnCM]

Russia hints at further talks with Saudi Arabia after oil prices crash

MAR 10 2020
Sam Meredith

International benchmark Brent crude traded at $37.45 Tuesday morning, up over 8%, while U.S. West Texas Intermediate (WTI) stood at $34.05, around 9% higher.

It comes after Brent and WTI both dropped 24% on Monday, sinking to more than four-year lows.

Russia’s energy ministry has proposed to hold a meeting with Russian oil companies on Wednesday, Reuters reported, citing two unnamed sources.

Russia has refused to rule out talks with OPEC to stabilize energy markets, according to reports, after oil prices registered their worst declines in almost 30 years on Monday.

International benchmark Brent crude traded at $37.32 Tuesday afternoon, up over 8.5%, while U.S. West Texas Intermediate (WTI) stood at $33.69, around 8.2% higher.

It comes after Brent and WTI both dropped 24% on Monday, sinking to more than four-year lows.

The moves follow a breakdown in talks between the kingpin of oil-producing group OPEC, Saudi Arabia, and non-OPEC member Russia late last week.

Markets had been hoping for an agreement by both countries, and other oil producers, to curb oil output in an effort to bolster prices; their failure to agree led oil prices to crash on Monday.

Speaking to reporters Tuesday, Russian Energy Minister Alexander Novak said that Moscow had not ruled out measures with OPEC to stabilize oil markets, according to Interfax news agency.

Russia’s energy ministry has proposed to hold a meeting with Russian oil companies on Wednesday, Reuters reported, citing two unnamed sources.

They are expected to discuss whether to prolong Russia’s alliance with OPEC.

The collapse of the OPEC and non-OPEC agreement “does not appear to have been part of any pre-meditated strategy or plan on Russia’s part or done with the intention of undermining U.S. shale production,” Daragh McDowell, head of Europe and principal Russia analyst at Verisk Maplecroft, told CNBC via email.

“The arrangement was unpopular with key members of the Russian elite — notably Rosneft’s Igor Sechin — and the economic damage caused by the COVID-19 outbreak provided a handy pretext for abandoning the deal.”

How did we get here?

Last week, the 14-member group recommended additional production cuts of 1.5 million bpd starting in April and extending until the end of the year. But OPEC-ally Russia rejected the additional cuts when the broader energy alliance met on Friday.

The meeting concluded with no directive about the production cuts that are currently set to expire at the end of the month.

In response, Saudi Arabia announced massive discounts to its official selling prices for April, with state-owned oil giant Saudi Aramco expected to ramp up production.

Riyadh currently pumps 9.7 million bpd but has the capacity to increase production up to 12.5 million bpd.

[db101]

Your best buying opportunity just began...

[db101]

With a meeting for Trump & Xi set on Saturday, Monday could be promising for the Oil & Gas market...

[db101]

Is Trump pushing gas prices higher?
https://www.politico.com/story/2019/04/22/trump-iran-sanctions-1284408

[db101]

...UWTIF should perform better this year

[db101]

Does the $UWTIF graph looks positive at this point?

[jablome]

Back to high 20$

[Lowjack]

https://www.cnbc.com/2018/07/12/bond-market-sounds-alarm-on-economy-but-it-may-be-a-false-one-for-now.html

[Fishpert]

I'm getting hurt with WLL whiting petroleum short. Seems like a bad candlestick yesterday and will go down.

If not I might have to close it out. Trump speaks at 2pm about Iran.

[RBKissMyAs]

I'm back!

[Fishpert]

rb you still around?

[rawiron1]

Bagged 14% net here today.

3x, OTC, best part no decay fees!

UWTIF

[rawiron1]

You kidding me? It's up 50% since Summer!

You get 3x here with no decay fees. I am surprised more are not here from Stock Twits.

UWTIF

[kamakiri]

UWTIF Still dying a slow OTC death

[kamakiri]

That's one concern using it now. The 'official' intraday value is no longer published (as far as I know) and UWTIF could go all over the map relative to the actual value of the paper. Good chance that everyone buying UWTIF is overpaying a little.

[jsc52033]

Didn't know it got delisted but hat is the one I bought it closed at $14 today uwt was down.
Now I am confused. Oil was down. ETF's can get a little screwy

[kamakiri]

Yeah, I stopped using UWTI/UWTIF shortly after it got delisted. Gotta request the change since UWT is now the current Velocityshares ticker. Just now with Citi instead of CS.

[jsc52033]

Ok your looking at uwt I' doing uwtif which I thought that was what tis board is

[kamakiri]

Dumped it all in $12.4X range.

[jsc52033]

The order I placed yesterday didn't fill only got part of the one today.
Have a nice weekend

[kamakiri]

Could be.Picked up a little UWT yesterday.Bounce or short swing up.

[jsc52033]

Looking like it may be time to jump back in jmo

[Poor Trader]

Short It

[kamakiri]

LOL. Planning on riding it down. MM shorts gonna bring the pain.

[BOS-MMT]

I think you have a time machine. lol. Took some profit from the shorts yesterday. I will short again if we keep bouncing.

[kamakiri]

What do you think?Called it perfectly so far...

[BOS-MMT]

Sold too early? Crude goes nuts now

[kamakiri]

All out of UWT Great gains on this swing.

[kamakiri]

Started cashing some UWT $13.6Xs...

[kamakiri]

No other UWT / UWTIF traders anymore?