Barclays Bank PLC (“ Barclays”) announced today that it
has suspended, until further notice, any further sales from
inventory and any further issuances of each of the iPath ® Pure
Beta Crude Oil ETNs due April 18, 2041 (Ticker: OIL; Exchange: NYSE
Arca) and the iPath ® Series B S&P 500 ® VIX Short-Term Futures
TM ETNs due January 23, 2048 (Ticker: VXX; Exchange: CBOE BZX
Exchange), in each case effective as of the open of trading on
Monday, March 14, 2022. This suspension may cause fluctuations in
the trading value of such ETNs. Daily redemptions at the option of
holders of the ETNs will not be affected by this suspension.
This suspension is being imposed because Barclays does not
currently have sufficient issuance capacity to support further
sales from inventory and any further issuances of the ETNs. These
actions are not the result of the crisis in Ukraine or any issue
with the market dynamics in the underlying index components.
Barclays expects to reopen sales and issuances of the ETNs as soon
as it can accommodate additional capacity for future issuances.
The market value of the ETNs may be influenced by, among other
things, the levels of supply and demand for such ETNs. It is
possible that this suspension may influence the market value of the
ETNs. Barclays believes that the above-mentioned limitations on
issuance and sale may cause an imbalance of supply and demand in
the secondary market for the ETNs, which may cause the ETNs to
trade at a premium or discount in relation to their indicative
value. Therefore, any purchase of the ETNs in the secondary market
may be at a purchase price significantly different from their
indicative value. The pricing supplement relating to the ETNs can
be found on EDGAR, the SEC website at www.sec.gov, as well as on
the product website at ipathetn.barclays.
An investment in the ETNs involves significant risks and may
not be suitable for all investors. The ETNs are riskier than
ordinary unsecured debt securities and do not benefit from any
principal protection. For more information on risks associated with
the ETNs, please see “Selected Risk Considerations” below and the
risk factors included in the relevant pricing supplement.
The pricing supplements for the ETNs to which this communication
relates can be found at: http://ipathetn.barclays/oilprospectus
http://ipathetn.barclays/vxxprospectus
Barclays is the issuer of the ETNs and Barclays Capital Inc. is
the issuer’s agent in the distribution. Please contact Barclays for
further questions:
- Financial advisors: Directly contact Barclays at
etndesk@barclays.com or 1-212-528-7990 to obtain further
information.
- Individual investors: Instruct your broker/advisor/custodian to
email us at etndesk@barclays.com or to call us at: 1- 212-528-7990
You may call in together with your broker/advisor/custodian or have
them speak to us on your behalf.
About Barclays
Barclays is a British universal bank. We are diversified by
business, by different types of customers and clients, and by
geography. Our businesses include consumer banking and payments
operations around the world, as well as a full-service corporate
and investment bank. For further information about Barclays, please
visit our website www.barclays.com.
Selected Risk Considerations
An investment in the ETNs described herein involves risks.
Selected risks are summarized here, but we urge you to read the
more detailed explanation of risks described under “Risk Factors”
in the applicable prospectus supplement and pricing supplement.
You May Lose Some or All of Your Principal: The ETNs are exposed
to any decrease in the level of the underlying index between the
inception date and the applicable valuation date. Additionally, if
the level of the underlying index is insufficient to offset the
negative effect of the investor fee and other applicable costs, you
will lose some or all of your investment at maturity or upon
redemption, even if the value of such index level has increased or
decreased, as the case may be. Because the ETNs are subject to an
investor fee and other applicable costs, the return on the ETNs
will always be lower than the total return on a direct investment
in the index components. The ETNs are riskier than ordinary
unsecured debt securities and have no principal protection.
Credit of Barclays Bank PLC: The ETNs are unsecured debt
obligations of Barclays Bank PLC and are not, either directly or
indirectly, an obligation of or guaranteed by any third party. Any
payment to be made on the ETNs, including any payment at maturity
or upon redemption, depends on the ability of Barclays Bank PLC to
satisfy its obligations as they come due. As a result, the actual
and perceived creditworthiness of Barclays Bank PLC will affect the
market value, if any, of the ETNs prior to maturity or redemption.
In addition, if Barclays Bank PLC were to default on its
obligations, you may not receive any amounts owed to you under the
terms of the ETNs.
Issuer Redemption: Barclays Bank PLC will have the right
to redeem or call the ETNs (in whole but not in part) at its sole
discretion and without your consent on any trading day on or after
the inception date until and including maturity.
Pure Beta Series 2 Methodology: The Barclays Pure Beta
Series 2 Methodology seeks to mitigate distortions in the
commodities markets associated with investment flows and supply and
demand distortions. However, there is no guarantee that the Pure
Beta Series 2 Methodology will succeed in these objectives and an
investment in the ETNs linked to indices using this methodology may
underperform compared to an investment in a traditional commodity
index linked to the same commodities.
Market and Volatility Risk: The market value of the ETNs may be
influenced by many unpredictable factors and may fluctuate between
the date you purchase them and the maturity date or redemption
date. You may also sustain a significant loss if you sell your ETNs
in the secondary market. Factors that may influence the market
value of the ETNs include prevailing market prices of the U.S.
stock markets or the U.S. Treasury market, the index components
included in the underlying index, and prevailing market prices of
options on such index or any other financial instruments related to
such index; and supply and demand for the ETNs, including economic,
financial, political, regulatory, geographical or judicial events
that affect the level of such index or other financial instruments
related to such index.
Concentration Risk: Because the ETNs are linked to an index
composed of futures contracts on a single commodity or in only one
commodity sector, the ETNs are less diversified than other funds.
The ETNs can therefore experience greater volatility than other
funds or investments.
Your ETNs Are Not Linked to the VIX Index: The iPath®
Series B S&P 500® VIX Short-Term FuturesTM ETNs offer exposure
to futures contracts of specified maturities on the VIX Index and
not direct exposure to the VIX Index or its spot level. These
futures contracts will not track the performance of the VIX Index.
In addition, the nature of the VIX futures market has historically
resulted in a significant cost to “roll” a position in the VIX
futures contracts underlying the index. As a result, the levels of
the underlying index, which tracks a rolling position in specified
VIX futures contracts, may experience significant declines as a
result of these roll costs, especially over a longer period. The
VIX Index will perform differently than the index underlying such
ETNs and, in certain cases, may have positive performance during
periods, while the index underlying such ETNs is experiencing poor
performance. In turn, an investment in such ETNs may experience a
significant decline in value over time, the risk of which increases
the longer that such ETNs are held.
Risk of Long Term Holdings: The iPath® Series B S&P
500® VIX Short-Term FuturesTM ETNs are only suitable for a very
short investment horizon. The relationship between the level of the
VIX Index and the underlying futures on the VIX Index will begin to
break down as the length of an investor’s holding period increases,
even within the course of a single index business day. The
relationship between the level of the underlying index and the
value of such ETNs will also begin to break down as the length of
an investor’s holding period increases due to the effect of accrued
fees. The long term expected value of such ETNs is zero. If you
hold such ETNs as a long term investment, it is likely that you
will lose all or a substantial portion of your investment.
A Trading Market for the ETNs May Not Develop: The liquidity of
the ETNs may be limited, as we are not required to maintain any
listing of the ETNs.
No Interest Payments from the ETNs: You may not receive any
interest payments on the ETNs.
Restrictions on the Minimum Number of ETNs and Date Restrictions
for Redemptions: Except as specified in the pricing supplement, you
must redeem at least the minimum number of ETNs specified in the
pricing supplement at one time in order to exercise your right to
redeem your ETNs on any redemption date. You may only redeem your
ETNs on a redemption date if we receive a notice of redemption from
you by certain dates and times as set forth in the pricing
supplement.
Uncertain Tax Treatment: Significant aspects of the tax
treatment of the ETNs are uncertain. You should consult your own
tax advisor about your own tax situation.
The ETNs may be sold throughout the day on the exchange through
any brokerage account. Commissions may apply and there are tax
consequences in the event of sale, redemption or maturity of ETNs.
Sales in the secondary market may result in significant
losses.
© 2022 Barclays Bank PLC. All rights reserved. iPath, iPath ETNs
and the iPath logo are registered trademarks of Barclays Bank PLC.
All other trademarks, servicemarks or registered trademarks are the
property, and used with the permission, of their respective
owners.
NOT FDIC INSURED · NO BANK
GUARANTEE · MAY LOSE VALUE
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version on businesswire.com: https://www.businesswire.com/news/home/20220314005483/en/
Ann Theilke +1 212 526 1472 Ann.Thielke@barclays.com
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