Credit Suisse is trying to block a FINRA arbitration related to VelocityShares Daily 2x VIX Short-Term ETN (NYSEArca: TVIX) with a suit arguing investors who initiated the claim don’t fit the “customer” requirements for the dispute-resolution process, Bloomberg News reports.

“The 29 investors named in the complaint bought exchange traded notes, or ETNs, underwritten by Credit Suisse called TVIX, on the secondary market, ‘through accounts or advisers unaffiliated with Credit Suisse,’ the company said in a complaint filed yesterday in federal court in Baltimore,” Bloomberg reported.

According to the complaint, the defendants were never customers of Credit Suisse.

TVIX fell sharply last year when a premium that had built up in the exchange traded note suddenly collapsed. Credit Suisse is the issuer for the ETN. [What Really Happened with TVIX]

TVIX is a leveraged ETN designed to provide 200% of the daily performance of CBOE Volatility Index futures.

“TVIX failed to track the VIX Futures Index and, therefore, failed to perform as represented, resulting in millions of dollars in losses to investors, including claimants,” according to the FINRA claim, Bloomberg reported.

The opinions and forecasts expressed herein are solely those of John Spence, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.