VelocityShares Daily 2x VIX ST ETN (TVIX)

[RainerRocks]

"Wholesalers called “Authorized Participants” (APs) will at times intervene in the market if the trading value of TVIX diverges too much from the IV value. If TVIX is trading enough below the IV value they start buying large blocks of TVIX—which tends to drive the price up, and if it’s trading above they will short TVIX. The APs have an agreement with Credit Suisse that allows them to do these restorative maneuvers at a profit, so they are highly motivated to keep TVIX’s tracking in good shape."

http://sixfigureinvesting.com/2015/10/how-does-tvix-work/

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