Share Activity Lifted for VIX Short-Term Futures ETN Ipath (VXX) Moving 8.17%

2 red-hot investment products just blew up, erasing almost $3 billion in minutes

"They are created to achieve their stated investment objectives on a daily basis, but their performance over longer periods of time can differ significantly from their stated daily objectives", reads XIV's prospectus.

Two investment vehicles tied to USA share market volatility collapsed after the S&P500 closed earlier this morning, and it could have significant implications when markets reopen later tonight.

Even though the stock market sell-off has reversed, the VIX remains at higher-than-average levels on Wednesday.

Meanwhile BlackRock (BLK), the world's largest asset manager and an operator of the iShares ETF fund family, Tuesday called for a regulatory classification system to label both inverse and levered exchange traded products differently than regular exchange traded funds. "And it blew up in their faces".

If the equity portfolio of a portfolio loses value, resulting in a higher weighting to bonds, then you can take some of the cash you have on hand, buy more stocks and put your portfolio's asset mix back to where it was before the market dropped.

Credit Suisse will begin shutting down the XIV ETN after announcing an "acceleration event". It said its losses related to the note would not materially impact the bank's finances but didn't quantify them.

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Phoenix is one of the most talented actors working today and immediately brings a certain amount of intrigue to this wild idea. This tone seems more aligned with Phoenix's acting as opposed to the direction Leto took the character in Suicide Squad .

Nomura Securities will redeem its Tokyo Stock Exchange-listed S&P 500 Vix Inverse ETN after a sharp equity selloff since late last week triggered a massive loss in the product.

ProShares officials said they would continue to manage ProShares Short VIX Short-Term Futures as usual.

Generally speaking, if the VIX is below 20, we have a stable and lower risk market. He said it "absolutely" contributed to the market turmoil.

Cboe Global Markets (CBOE) stock lost more than a tenth of its value Tuesday and smashed through its 50-day moving average line as trading was halted on several inverted volatility products, raising concerns about trading volume at its Chicago Board Options Exchange.

"It spirals", Block said.

IBD'S TAKE: Read IBD's The Big Picture column each day to stay on top of the market direction, a key indicator that lets you know when you can be aggressive and when you should move to the sidelines.

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Derivatives markets indicated, however, that the spike in volatility of the past few days would not be sustained. That suggests retail investors could own a sizeable chunk of the volatility product which booked a 585 per cent gain for the two years ending February 1.

A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in the business.

Whenever markets go haywire, some people blame the sophisticated computer programs that buy and sell stocks based on complex algorithms and formulas.

The "VIX" is the CBOE Volatility Index.

Shares of the CBOE Global Markets Inc.

This trade made a lot of money, until it all went bad Monday afternoon.

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The good news is that unlike the risky mortgage securities at the heart of the 2008 crisis, these volatility instruments don't change the overall economic environment.

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