I have seen many people on ET and Twitter talk about how terrible these two products are and how stupid people were for trading them in the first place. This is a flawed line of thinking. These products were very open and transparent about their goals, holding a 30 day rolling maturity of short VX futures. If it was not the traders intent to short VX futures, they should not have traded this product. If you had been short both the front and second month futures, you would have had the same outcome (most likely a margin call before the end of the day). The only problem with these products was that people who were uneducated in them started trading them without having any idea what they were trading and how they had moved in the past when there was sudden high volatility. It seems ridiculous to me that people are now wanting to sue Credit Suisse over their personal use of the XIV. These products not only did exactly what they were supposed to do, but also shielded the investor in the case of a greater than 100% loss which not all brokers would have done. Especially in the case of the investor holding VX short in the event of a flash crash like what happened on Monday in the AH session. To put this a different way, if an insurance agent was selling hurricane insurance right before people were predicting a hurricane and hoping to collect a large premium from it when the hurricane didn't happen, would it make sense to absolve them of their loss from the people who bought the insurance?