Barclays suspends further sales and issuances of two series of iPath® ETNs (the “ETNs”) until further notice
NEW YORK–(BUSINESS WIRE)–Barclays Bank PLC (” Barclays”) today announced that it has suspended, until further notice, all new sales from inventory and all new issues of each of the iPaths ® ETN Pure Beta Crude Oil due April 18, 2041 (Ticker: OIL; Exchange: NYSE Arca) and the iPath ® Series B S&P 500 ® VIX Short Term Futures Contracts MT ETNs due on January 23, 2048 (Ticker: VXX; Exchange: CBOE BZX Exchange), in each case from the opening of markets on Monday, March 14, 2022. This suspension may cause fluctuations in the trading value of these ETNs. Daily redemptions by ETN holders will not be affected by this suspension.
This suspension is imposed because Barclays does not currently have sufficient issuance capacity to support new sales from inventory and any further issuance of ETNs. These actions are not the result of the crisis in Ukraine or a problem with market dynamics in the constituents of the underlying index. Barclays plans to reopen ETN sales and issuance as soon as it can accommodate additional capacity for future issuance.
The market value of ETNs may be influenced by, among other things, the levels of supply and demand for such ETNs. It is possible that this suspension influences the market value of ETNs. Barclays believes that the above issue and sale limitations may lead to an imbalance of supply and demand in the secondary market for ETNs, which may cause ETNs to trade at a premium or discount to their indicative value. Therefore, any purchase of ETNs on the secondary market may be at a purchase price significantly different from their indicative value. The ETN Pricing Supplement can be viewed on EDGAR, the SEC’s website at www.sec.gov, and the product’s website at ipathetn.barclays.
An investment in ETNs involves significant risks and may not be suitable for all investors. ETNs are riskier than ordinary unsecured debt securities and have no principal protection. For more information on the risks associated with ETNs, please see “Selected Risk Considerations” below and the risk factors included in the relevant pricing supplement.
The tariff supplements for the ETNs concerned by this communication can be consulted at the address:
Barclays is the issuer of the ETNs and Barclays Capital Inc. is the issuer’s distribution agent. Please contact Barclays for any further questions:
Financial Advisors: Contact Barclays directly at [email protected] or 1-212-528-7990 for more information.
Individual investors: Ask your broker/advisor/custodian to email us at [email protected] or call us at: 1-212-528-7990 You can call your broker/advisor/custodian or ask them to contact us speak on your behalf.
Barclays is a British universal bank. We are diversified by business, by different types of clients and customers, and by geography. Our businesses include worldwide retail banking and payment transactions, as well as full-service corporate and investment banking. For more information about Barclays, please visit our website www.barclays.com.
Selected risk considerations
An investment in the ETNs described here involves risks. Certain risks are summarized here, but please read the more detailed explanation of the risks described under “Risk Factors” in the applicable Prospectus Supplement and Pricing Supplement.
You can lose some or all of your principal: ETNs are exposed to any decline in the level of the underlying index between the inception date and the applicable valuation date. In addition, if the level of the Underlying Index is insufficient to offset the negative effect of investor fees and other applicable costs, you will lose some or all of your investment at maturity or redemption, even if the value of that index level has increased. or reduced, as the case may be. Because ETNs are subject to investor fees and other applicable fees, the return from ETNs will always be less than the total return from a direct investment in the index constituents. ETNs are riskier than ordinary unsecured debt securities and offer no principal protection.
Credit from Barclays Bank PLC: ETNs are unsecured debt obligations of Barclays Bank PLC and are not, directly or indirectly, obligated or guaranteed by any third party. Any payment to be made on the ETNs, including any payment at maturity or upon redemption, is dependent on Barclays Bank PLC’s ability to meet its obligations as they become due. Accordingly, the actual and perceived creditworthiness of Barclays Bank PLC will affect the market value, if any, of ETNs prior to maturity or redemption. In addition, if Barclays Bank PLC fails to perform its obligations, you may not receive monies due to you under the terms of the ETNs.
Redemption of the issuer: 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 from the launch date up to and including deadline.
Pure Beta Series 2 Methodology: The Barclays Pure Beta Series 2 methodology aims to mitigate distortions in commodity markets associated with investment flows and supply and demand distortions. However, there is no guarantee that the Pure Beta Series 2 methodology will achieve these objectives and an investment in ETNs linked to indices using this methodology may underperform an investment in a traditional commodity index linked to the same commodities.
Market and volatility risk: The market value of ETNs can be influenced by many unpredictable factors and can fluctuate between the date you buy them and the maturity date or redemption date. You may also incur a significant loss if you sell your ETNs in the secondary market. Factors that may affect the market value of ETNs include prevailing market prices in the US stock exchanges or US Treasury market, index constituents included in the underlying index, and market prices options on this index or any other financial instrument linked to such index; and the supply and demand for ETNs, including economic, financial, political, regulatory, geographic or judicial events that affect the level of this index or other financial instruments linked to this index.
Concentration risk: Because ETNs are linked to an index composed of futures contracts on a single commodity or in a single commodity sector, ETNs are less diversified than other funds. ETNs may 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 Futures ContractsMT ETNs provide exposure to specified expiry futures contracts 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 over” a position in the VIX futures contracts underlying the index. Therefore, the levels of the Underlying Index, which tracks a moving position in specified VIX Futures Contracts, may experience significant declines due to these rollover costs, especially over a longer period. The VIX Index will behave differently from the index underlying these ETNs and in some cases may perform positively for periods while the index underlying these ETNs is performing poorly. In turn, an investment in such ETNs may experience a significant decline in value over time, the risk of which increases with the length of time that such ETNs are held.
Risk of long-term assets: The iPath® Series B S&P 500® VIX Short Term Futures ContractsMT ETNs are only suitable for a very short investment horizon. The relationship between the level of the VIX Index and the underlying VIX Index futures will begin to break down as the length of an investor’s holding period increases, even during a single index business day. The relationship between the level of the underlying index and the value of these 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 these ETNs is zero. If you hold such ETNs as a long-term investment, you are likely to lose all or a substantial part of your investment.
A trading market for ETNs may not develop: The liquidity of ETNs may be limited, as we are not required to maintain an ETN listing.
No interest payments from ETNs: You cannot receive interest payments on ETNs.
Restrictions on the minimum number of ETNs and date restrictions for redemptions: unless otherwise specified in the extra chargeyou must redeem at least the minimum number of ETNs specified in the extra charge at once 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 notice of redemption from you at certain dates and times as set out in the extra charge.
Uncertain tax treatment: Important aspects of the tax treatment of ETNs are uncertain. You should consult your own tax advisor regarding your own tax situation.
ETNs can be sold throughout the trading day through any brokerage account. Commissions may apply and there are tax consequences in the event of the sale, redemption or expiry of ETNs. Secondary market sales can result in significant losses.
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NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE