ETN UWT liquidation

Discussion in 'Trading' started by marketmania, Mar 25, 2020.

  1. marketmania

    marketmania

    Citigroup is liquidating the UWT oil ETN

    Why would they liquidate a highly traded ETN like the UWT.

    It has high decay and contango. and lose way more value than drop in oil.

    I assume the options that they use to are not liquid enough for the size of their assets. They had to liquidate.
     
    #1     Mar 25, 2020
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  2. guru

    guru

    I don’t know why, but I traded GUSH and it also went down below $0.50, then it was reverse split 40:1 and now it’s back around $15. Not sure why UWT wasn’t handled the same way.
     
    #2     Mar 25, 2020
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  3. Dustin

    Dustin

    There was a liquidation clause in the prospectus. It hit the max allowable % drop.
     
    #3     Mar 25, 2020
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