With every trader suddenly focused on the vol-ETF complex after last night's collapse in the NAV of the most popular inverse VIX ETF - the Credit Suisse-created VelocityShares XIV - which plunged over 80% effectively triggering a "termination event", this morning it appears that the worst is indeed coming, with both the VelocityShares Daily Inverse VIX Short-Term ETN (XIV) and the ProShares Short VIX Short-Term Futures ETF (SVXY) suspended by the Nasdaq and NYSE Arca, respectively, on pending news.

As a reminder, the now terminal collapse of both ETFs took place after the VIX surged a record 116%, triggering a waterfall collapse in the NAV of the two synthetic products.

Meanwhile, to ease concerns that it had suffered a ~$500 million rout on its XIV holdings, moments ago Credit Suisse repeated what it told us last night, issuing a statement that the Swiss bank "has experienced no trading losses" from Velocity Shares Daily Inverse VIX Short Term ETNs, or XIV, due December 4, 2030, the bank said in statement.

Ok, but if not Credit Suisse, then someone else must have gotten hit on that $500 million in XIV exposure. One wonders who that someone is.

