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BCLYF.US
id: 1105
loss on VXX trade from sudden share sale halt
I am writing to bring to your attention an issue I encountered in March 2022 regarding the sudden halting of sales and issuance of VXX shares (iPath Series B S&P 500 VIX Short-Term Futures ETN), which has resulted in significant financial loss for me.
On February 24 & 25, 2022, I opened a short position on VXX for a total of 588 shares at an average weighted price of $26.443
3 weeks later, on March 14th 2022, Barclays announced it had temporarily suspended the sales and issuance of VXX shares.
This led the price to spike by nearly 60% by the next day which is when I was forced to close the position for lack of margin and fear of further losses.
Accordingly, I suffered a loss of $5,727.14 on closing the 588 shares position at average weighted price of $36.183.
The bank’s failure to more quickly disclose that it had exceeded the number of VIX Short-Term Futures ETN (VXX) that it had permission to sell violated federal securities law.
This failure led to the sudden halt of share sales and ultimately the price spike.
Case Status
Inactive Investigation
Alleged Offence
Mismanagement,
Failure to Disclose,
Malpractice,
Negligence,
Breach of Fiduciary duty
Suspected Party
Shareholder
Security Type
Stocks
Trade Direction
Short
Shock Event Date
03/14/2022