June 23, 2018
Hello, I was an investor in SVXY on 02/05/2018 . I bought shares of this ETF fund on that day in the afternoon @ $ 95.65 per share. I then went back to work and was not even watching the market action the rest of the day.
Then the next day 02/06/2018 I had seen that the price of SVXY was $ 11.70 open price , I was horrified of the price drop after market close. I lost over $ 122,000.00 dollars in less than 3 hours actual market open time.
SVXY shares drooped some 85 % after hours trade when a small individual investor has no access to trade such a product.
Questions and concerns I have are as follows :
1 ) why was such a product allowed to be traded by unsophisticated investors without any trading halt capability or some sort of reasonable price discovery ?
2 ) I looked at the SVXY chart history since it started trading in late 2011 before investing in it on 02/05/2018 and there was no indication of such volatility in those 6 plus years.
3 ) I complained to ETRADE my online broker about the trading disaster and was told to read the prospectus before investing , so I read it after the fact and it says for sophisticated investors only . Why would ETRADE allow me to trade SVXY even though I am clearly not this type of client.
4 ) I am a very reasonable person and from what I have read on the volatility trade of multiple ETN and ETF products during that period of the crash is that the whole volatility trade was set up to collapse after hours . It was covered on CNBC for weeks and other financial reporting outlets also covered the crash, this tells me it was a huge deal that Wall Street basically let this happen and the individual investor got really robbed again by market manipulators.
5 ) I feel that there should be a retroactive type of money returned to investors at least to the closing price of that day . a sort of " clawback " of stolen money.
6 ) I have lost almost all confidence in Americas Financial markets . Where are the safety stops for the little investor ? How are we supposed to react to these types of manipulated markets ?
I think this was on the same lines as the housing bubble collapse in 2006 , certain institutions lined themselves up on the opposite side of the trade and put tremendous pressure on the volatility trade on that particular day , knowing full well how it would unfold and then profiting massively by their manipulation of one class of products.
There needs to be a full investigation ( do an audit of the SVXY ETF product creator and of all shareholders previous to and after collapse ) and retro compensation for losses from this disaster !
The Big Banks got bailed out from the housing mess and are still reaping huge benefits from the adjustments they were forced to make by the Federal Government.
Please help us little investors .