Deutche Bank liquidating its double oil ETN (DXO; TSE: DOU)

Deutche Bank is liquidating its double oil ETN which is listed on NYSE as DXO and the TSX as DOU (thanks to Naked Capitalism and FT Alphaville for bringing it to my attention.) The result is due to the crackdown on ETFs and ETNs by the CFTC I mentioned a few weeks ago.

I wondered if there is an opportunity to profit from the liquidation. An opportunity may materialize if there is mass selling by those who don't want to wait around. Unfortunately, it appears it will be difficult, if not impossible. The ETN is supposed to be liquidated on September 9th using the price that day but it appears the ETN has barely traded at a discount to the NAV (check the official site and ETFConnect.)

Anyway, something to watch for next Wednesday and see if anything crops up. I highly doubt an opportunity will materialize.

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