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VelocityShares 3x Long Crude Oil ETNs linked to the S&P GSCI Crude Oil Index ER New (UWT)

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0.1636-0.0021 (-1.27%)
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  • t
    thruster999
    If you want to make a SEC complaint, make the following complaint:

    On March 19 and then again on March 22 Citigroup announced that it had exercised its right to accelerate the UWT exchange traded note (ETN) stating that UWT ETN holders would receive payment for each ETN based on the closing indicative value (CIV) of UWT as of March 31 – even warning investors that anyone purchasing UWT ETNs subsequent to March 31 at a higher rate than the CIV would be subject to losses.
    According to Ctigroup’s press releases the UWT CIV was to be calculated as follows: Citigroup would continue to track the related S&P Index between March 25 and March 31 adjusting UWT each day with March 31st price being the final CIV.

    However, Citigroup failed to honor its obligations to the UWT ETN holders as follows:
    A) Between March 25 and 31, when the related S&P index decreased, UWT decreased accordingly. However, when the related index went up, either the price of UWT decreased or did not increase by the 3X it was supposed to. For instance, on March 25, the index rose by 24% - UWT only increased by 22% when it should have risen by 72% (or 3X). On March 31, the index rose by 2% and therefore UWT should have risen by 6% but instead, UWT closed down 4%. Based on Citigroup's own announcements the payout should be $0.30+ per ETN.
    B) In fact, Citigroup stopped tracking the related index altogether over a week prior to its March 22 announcement. For several days prior to the acceleration period (March 25 -31) UWT’s price does not appear to correlate with the related index. Furthermore, it appears UWT’s price was suppressed i.e. it was only adjusted downward even when the index was up.
    C) Despite, Citigroup’s promises and warnings the UWT price did not track the related index subsequent to March 31. In other words, Citigroup’s press release is misleading.
    D) Technically, Citigroup had no right to accelerate this ETN. According to the related (UWT) prospectus, a “trigger event” would only occur a when the net indicative value of the fund fell 75% (index 25%) in one day. Although, this decrease did occur during intra-day trading it has never occurred at the daily close price.
    E) And finally, on April 3rd, Citigroup has removed the UWT website leaving ETN holders in the dark as to how much and when they will be paid.
  • J
    Jeffrey
    I don’t get how it can still be trading if it’s no longer tied to the underlying index. It should have ceased the day it was no longer connected. The liquidation value is tied to a complex equation with variables that should have all been determined by March 31, 2020, the way I read the prospective. If all the variables are defined, CITI knows the liquidation value, yet they haven’t published that, and there’s no way to connect with a live person to get the answer. I’ve been trying all day. If you take people’s advice on here, the liquidation value ranges from 0.10 to 0.51. CITI is silent. Class action lawsuit anyone??
  • g
    gvictora
    Help me with the math. What will the price of oil have to be to get UWT back to about 8. The ETF would have to go up about 650% (from 1,25). If I divide that by 3, to account for the 3x leverage, that's about 216%. So, if oil is 30/barrel right now, does that mean oil has to get to about 70/barrel for UWT to get to 8? That seems impossible. Is my math messed up? Please correct me if I wrong.
  • g
    g
    So yesterday it closed at $0.25 when market closed but then traded till later and closed at $0.18 after markets; so based on $0.18 it is up 75% which is 3x times oil.

    https://www.velocityshares.com/etns/product/uwt/

    Closing Indicative Value $0.18

    Closing Price $0.26

    This has 2 closing prices, so they can gouge us on returns

    The Note will provide investors with a cash payment at the scheduled maturity or early redemption or acceleration based on the performance of the underlying index, S&P GSCI Crude Oil Index ER. Investors should exercise caution in trading the ETNs between 2:30 p.m. and 4:00 p.m., New York City time. During this time period, due to delays in the publication of the closing level of the underlying index (which is based on futures trading as of 2:30 p.m. but is not published until after 4:00 p.m.),
    PROSPECTUS FAQs VelocityShares 3x Long Crude Oil ETN is an exchange-traded note issued by Citigroup Global Markets Holdings Inc. and guaranteed by Citigroup Inc. The Note will provide investors with a cash payment at the scheduled maturity or early r
    PROSPECTUS FAQs VelocityShares 3x Long Crude Oil ETN is an exchange-traded note issued by Citigroup Global Markets Holdings Inc. and guaranteed by Citigroup Inc. The Note will provide investors with a cash payment at the scheduled maturity or early r
    www.velocityshares.com
  • o
    outsidetoinside
    Sleepless night. UWT could price at $1.60 in the morning. I have never seen such a downward price movement in my 20 yrs trading!
  • B
    Bill
    U.S. crude supply fell 3.1M barrels last week, API says
    Apr. 16, 2019 4:50 PM ET Carl Surran, SA News Editor

    The American Petroleum Institute reportedly shows a draw of 3.09M barrels of oil for the week ending April 12, vs. a build of 4.1M barrels in the previous week.

    Gasoline inventories reportedly show a draw of 3.56M barrels, and distillate inventories show a build of 2.33M barrels, while Cushing inventories had a draw of 1.56M barrels.

    Nymex crude recently was at $64.28/bbl in electronic trading, up from today's $64.05 settlement price.

    https://seekingalpha.com/news/3451272-u-s-crude-supply-fell-3_1m-barrels-last-week-api-says
    The American Petroleum Institute reportedly shows a draw of 3.09M barrels of oil for the week ending April 12, vs. a build of 4.1M barrels in the previous week.Gasoline inventories reportedly show a d
    The American Petroleum Institute reportedly shows a draw of 3.09M barrels of oil for the week ending April 12, vs. a build of 4.1M barrels in the previous week.Gasoline inventories reportedly show a d
    seekingalpha.com
  • F
    Fred
    Total Asset and total shares means they have to pay out 51 cents a share
    SHARES OUTSTANDING
    834.95M
    TOTAL NET ASSETS
    $480.4M
  • J
    Jun
    Hi. I am not an expert on this Etn, my average is about $5 (20,000 shares). Huge losses now... The product details says never recommending more than one day, but forget it !! I will hold on to this next 1 year until WTI reaches $55. I know about risk of liquidation, is there any other cost to consider? Such as Roll-over cost...?
  • S
    Sunny
    Do you guys think we will ever get to 19?
  • K
    Katie
    I just filed my complaint. I am in if anyone is interested in a class action law suit. I had over 2 million shares....
  • g
    gene_frequency
    WARNING: Yahoo! stock message boards are for entertainment purposes only. Always avoid trading on 'advice' given by anonymous posters. Do your own due diligence.
  • B
    Bob
    should be up 6-9%
  • C
    Carson
    I would like to put together a group email to follow this outcome... Would anyone else like to be on that email chain? I'm really sad about this and am not sure how to proceed. I just want more information.
  • M
    MSN
    Remember, tomorrow (April 2) is the last trading day and "holders of this ETN will receive a cash payment per ETN in an amount (the “Optional Acceleration Redemption Amount”) equal to the closing indicative value of the respective series of ETNs on the final valuation date of the Optional Acceleration Valuation Period. The Optional Acceleration Valuation Period will be the period of five consecutive index business days beginning on March 25, 2020 and expected to end on March 31, 2020."
  • J
    Juan Carlos
    Most of us don’t like losing money in the market but we accept it. However, in instances of obvious scheming against us, we shouldn’t accept it. I, like many of you, have been holding thousands of shares of UWT for several months, confident that oil price declines had to reverse at some point. Now, with a large percentage increase in the price of crude that should have resulted in about a three-times percentage increase in UWT, we have been iced out. Everything about the timing of the closure of UWT just before the surge in the price of crude oil stinks. It is impossible that this is all a coincidence. Let’s discuss this matter. This board might go away, so let’s keep in touch. Can someone on the board serve as a central contact person? If no one volunteers, everyone interested can e-mail me so that we at least won’t be left without a way to communicate with each other.
  • A
    AM
    Citi is controlling price today, due to redemption process. This ETN % should be up 3X the percentage of WTI(50-75%), but the ETN is down....Price Fixing?????
  • C
    ChaselLu
    should I hold, or should I just sell
  • t
    thruster999
    I believe there is another complaint that would get more traction with SEC than the one I wrote previously namely, Citi may have mitigated its own losses at the expense of the public exchange traded note (ETN) holders.

    Apparently, the fund associated with uwt had $137M in assets/cash. According to Citi’s prospectus uwt had 306M ETNs outstanding held by the public. Had ALL of these funds been distributed to the ETN holders each ETN would have received $0.45 per ETN. Instead, it appears Citi had come up with a mechanism (which includes not adjusting uwt to correlate to the related index) to pay the ETN holders only $0.1647 per ETN.

    Alternatively, of the $137M in the fund, Citi only paid the public ETN holders $50M and kept the remaining $87M for itself.

    It was Citi that exercised the poison pill that took all rights and control away from the public, therefore Citi should not be able to enrich itself off the backs of the public ETN holders.
  • J
    John Dsouza
    Just bought for the first time as I can't believe this is 9.25. Great trading play here as it will probably be closer to 9.75-9.90 before close today (and back to 10+ before end of week)!
  • O
    OOO247
    I bought too early and averaged down to $17.30. really hoping it gets there as I have been in red for 5 months now.