Three More Elements ETNs To Delist From NYSE

March 13, 2009

Credit Suisse ETNs latest tied to Elements platform to delist from the NYSE.  

 

Credit Suisse Securities, the issuer of four Elements-branded exchange-traded notes, confirmed on Friday that it was pulling three of those funds off the New York Stock Exchange. 

Set to end trading on the NYSE by April 3 are:

  • The Elements MLCX Gold Index ETN (NYSE: GOE)
  • The Elements MLCX Livestock Index ETN (NYSE: LSO)
  • The Elements MLCX Precious Metals Plus Index (NYSE: PMY)

A Credit Suisse spokeswoman said a release had been posted on its Web site. An earlier check by IndexUniverse.com didn't locate the news, which was anticipated due to unusual trading activity recently in many of its shares.

But late in the week, the same representative called IU.com back to say that a statement had indeed shown up on the site. It was dated March 10. 

In the release, Credit Suisse credited "insufficient" trading volumes for the decision. At the same time, Credit Suisse didn't rule out letting the trio of ETNs trade over the counter. 

It added that there's no plan at the moment to delist its fourth ETN, the Elements Credit Suisse Global Warming ETN (NYSE: GWO).

"However, there is no assurance that the GWO ETNs will continue to be listed on NYSE Arca or another securities exchange," the statement added. "In addition, from time to time Credit Suisse may decide, at its sole discretion, to issue additional units of the GWO ETNs."

At the end of February, Credit Suisse said that it had been contacted by the Securities and Exchange Commission regarding "extraordinary" trading and price movements linked to GOE.

At the same time, Credit Suisse said it didn't plan on issuing any new shares of the ETN and that there was no lead market maker on the NYSE assigned to make a market for the fund. 

On the same day, in a separate announcement, the firm said it expected to issue an additional 404,000 units of the now soon-to-be delisted LSO. "As a result, the maximum amount of securities outstanding at any given time is not expected to exceed the 654,000 securities outstanding as of February 26, 2009," the statement added.

The Credit Suisse ETNs aren't the first Elements to delist. Last October, five currency Elements also were taken off the NYSE for lack of assets—less than nine months after they had launched. Those were issued by Deutsche Bank, however.   

-- This report was submitted by IU.com's Murray Coleman. 

 

 

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