Inverse VIX ETFs halted from trading after heavy losses

LONDON (Reuters) - Three U.S.-listed inverse VIX ETFs were halted from trading on Tuesday after suffering heavy losses on Monday when a spike in U.S. stocks volatility caused a violent unwind of trades betting volatility would stay low.

Trading in the VelocityShares Inverse Vix Short-Term ETN (XIV.P), ProShares Short VIX Short-Term Futures ETF (SVXY.K) and VelocityShares Daily Inverse VIX Medium-Term ETN (ZIV.O) was halted and all three products had a short sell restriction placed on them, Thomson Reuters data showed.

"Trading is halted pending the release of material news," Nasdaq said on its website.

Yesterday's spike in the VIX gauge of U.S. stocks volatility (.VIX) sent the VelocityShares Daily Inverse VIX Short-Term ETN down 84 percent in after-hours trading, while the ProShares Short VIX ETF fell nearly 79 percent.

Credit Suisse (.CSGN.S), the issuer of the VelocityShares ETN (XIV.P), in which it has a 32 percent stake, said it had not suffered any loss on the product.

(Reporting by Helen Reid, Editing by Tricia Wright)