Direxion Leveraged ETF Equity Swaps Counterparties
If you are thinking of taking a position in one of these ETFs, I would check to see who the largest counterparties are, then take a look at their charts.
I checked JNUG’s a couple of weeks ago and the largest counterparties were Credit Suisse and Deutsche Bank. Direxion Annual Report Oct 2015 (pg 102)
I emailed Direxion about this and they sent me some document, which just said “we can terminate our agreements on a daily basis”.
Didn’t fill me with a lot of confidence.
I could not find similar info for GDX/GDXJ, any idea. Not looking for SWAP dealers, but who are the counter parties or Authorized Participants mentioned in the Risks section.
Go to Van Eck’s website.
Oh, sweet