RUSL suspended by Direxion

N

nitrene

I assume it got too volatile for them to maintain. It didn't go down 50% but it was down ~30% one day.
According to the e-mail I got it looks like Direxion is suspending new shares effective yesterday:

Direxion Suspends Creations in RUSL

Effective February 24, 2022, creations of the Direxion Daily Russia Bull 2X Shares (RUSL) are suspended until further notice.
 
nitrene said:
I assume it got too volatile for them to maintain. It didn't go down 50% but it was down ~30% one day.
According to the e-mail I got it looks like Direxion is suspending new shares effective yesterday:

Direxion Suspends Creations in RUSL

Effective February 24, 2022, creations of the Direxion Daily Russia Bull 2X Shares (RUSL) are suspended until further notice.
More...
Congrats. This thread is the third result in Google Search for RUSL suspended. This will make @Baron happy.
 
Underlying stocks and their ADRs (sponsor Sberbank among others) are at risk of not being tradeable.
Exclusion of swift will make it impossible to trade them anymore.

And Putin might do more crazy stuff, I would not be entirely surprised if he fully nationalized Gazprom and/or declares foreign holdings as void (confiscating the stocks backing the ADRs).
 
Last edited:
The pricing of RUSL doesn't make sense anymore. RSX down 27% and RUSL down 17%? Even if you assume Direxion stopped buying new swaps on Thursday the RSX is still down 26% and the RUSL is up 6% since then.
 
It seems this ETF will be semi frozen. Existing owners can still trade. But the NAV can't be valued. Nothing the ETF can do about it. Not sure if the ETF has any credit insurance like this.

Still this is better than the old GUSH, where its NAV dropped by 90% in one day.

Amen!
 
NAV is +/- 0 now, maybe even negative, no?
Main holdings Gazprom and Sberbank are down 42 and 70% today in USD.
and RUSL is x2
 
JamesJ said:
NAV is +/- 0 now, maybe even negative, no?
Main holdings Gazprom and Sberbank are down 42 and 70% today in USD.
and RUSL is x2
More...

Asset can never get a negative value. Owners can just abandon them. No further liability. Do not think SEC or FBI can investigate ETF owners.
 
RedSun said:
Asset can never get a negative value. Owners can just abandon them. No further liability. Do not think SEC or FBI can investigate ETF owners.
More...

yeah sure, but NAV can go negative (they get the 200% via swaps and stuff, so potential higher liabilites than assets at some point), ie. RUSL at 0.
 
RedSun said:
Still this is better than the old GUSH, where its NAV dropped by 90% in one day.
More...
Yeah I owned the old GUSH, ERX & JNUG which almost went to zero in March 2020. Soon after Direxion reduced all these to 2X and then the gold stocks took off. Bad timing I guess.
 
You must log in or register to reply here.
Back
Top