Citigroup, Investors Want Our Money Back!
Author： Ken Poon
Citigroup Global Markets Holding (CGMH) accelerated two ETNs namely UWT and DWT last month, leaving thousands of investors in deep loss. Whether their acts were legal, legitimate, and rightful were subject to investigation, however it was a clear sign of unethical and irresponsible treatment to all those investors who had trusted Citi's brand.
We call for a series of actions by all stakeholders:
- ETNs if so intended for day trade and sophisticated investors only, they shall not be accessible for trade the same way as any other stocks or exchange-traded products did. Special warnings shall be mandated prior to investors placing any trade orders. We call for regulator's action to amend the relevant regulations and investigate if any potential neglection of those ETN issuers and brokerage houses.
- CGMH initiated the acceleration at their discretion and timed it at the expense of investors. Both ETNs UWT and DWT's prices also didn't move according to what they were designed for and advertised to be, especially during the closing period of the two instruments. We call for an investigation if there were any price manipulation instead.
- The notice of closing both ETNs in the form of public announcements given to ETN holders was insufficient and ineffective alerting investors, including prospective investors. Some investors still entered to trade after their public announcements without knowing the news. CGMH certainly didn't make adequate efforts informing ETN holders in advance about their decision of closure.
- We demand fair compensation by CGMH to ETN holders for their losses as a result of CGMH's expected trade closure.
We welcome all small investors who have suffered a similar pain due to the abusive actions by any big financial institutions to join our Facebook group Little Fish Tears, together we will fight for our justice.