New iPath® Series B S&P GSCI® Crude Oil ETN
(ticker: OILB) provides investors with exposure to the underlying
crude oil futures index
Barclays Bank PLC (“Barclays”) announced today the launch of the
iPath® Series B S&P GSCI® Crude Oil ETNs (“New ETNs”) on the
NYSE Arca exchange under the ticker symbol OILB. The New ETNs are
designed to provide investors with exposure to the performance of
the S&P GSCI® Crude Oil Total Return Index (“the Index”). The
Index is a sub-index of the S&P GSCI® Commodity Index and
reflects the returns that are potentially available through an
unleveraged investment in the West Texas Intermediate (WTI) crude
oil futures contract.
The New ETNs feature an investor fee calculated and subtracted
from the closing indicative value of the ETNs on a daily basis at a
rate of 0.45% per annum. The New ETNs will also be redeemable at
the sole discretion of Barclays on any trading day on or after
their inception until maturity.
Barclays has also announced that effective after the close of
trading November 18, 2016 it will suspend, until further notice,
any further sales from inventory and any further issuances of
iPath® S&P GSCI® Crude Oil Total Return Index ETNs (“Old ETNs”
and, together with the New ETNs, the “ETNs”), which are listed on
the NYSE Arca exchange under the ticker symbol OIL. Additionally,
for a limited period of time, Barclays will waive the minimum early
redemption size of 50,000 Old ETNs with respect to the valuation
date occurring on each Wednesday (or, if such calendar day is not a
trading day, the trading day immediately thereafter). Please refer
to the associated press release for more details on these actions
taken with respect to the Old ETNs.
Holders of the Old ETNs that wish to sell their Old ETNs and/or
purchase New ETNs may take any of the following actions:
1) Sell Old ETNs and/or purchase New ETNs on the secondary
market at the prevailing trading price on the exchange;
2) Put Old ETNs to Barclays (including with respect to the
valuation date occurring on each Wednesday with reduced minimum
early redemption sizes) and simultaneously purchase New ETNs from
Barclays in an amount having an equal dollar value, with each
transaction having the same valuation date and settlement date (a
“Net Settlement”). In this case, upon redemption of its Old ETNs,
the holder would receive a number of New ETNs equal to the
aggregate daily redemption value of the redeemed Old ETNs, rounded
to the nearest full New ETN, with a residual cash payment for any
“partial” remaining ETNs. Holders who wish to effect a Net
Settlement must instruct their broker or other person through whom
they hold their Old ETNs in accordance with the procedures set
forth in the section “Specific Terms of the ETNs—Early Redemption
Procedures” in the prospectus relating to the Old ETNs. Holders may
also contact Barclays at etndesk@barclays.com or
1-212-528-7790 to obtain further information regarding the
procedures for Net Settlement.
3) Put Old ETNs to Barclays under the early redemption option
without simultaneously purchasing New ETNs or purchase New ETNs
from Barclays without simultaneously redeeming Old ETNs, in each
case for the applicable cash value.
Any redemption of Old ETNs or sale of New ETNs is subject to the
conditions described in the prospectus for the relevant series of
ETNs and will be valued using the applicable daily redemption value
or closing indicative value on the valuation date for the
transaction, with no additional purchase or redemption fees, in
each case in accordance with the prospectus for the relevant series
of ETNs. Holders are not required to take any of the actions set
forth above and may choose to continue to hold their ETNs at any
time. Anyone considering investing in the ETNs or continuing to
hold the ETNs should consider the risks described in the prospectus
for the relevant series of ETNs when making an investment decision
and consult with their broker or financial adviser to evaluate
their investment in the ETNs.
The ETNs are riskier than ordinary unsecured debt securities and
have no principal protection. The ETNs are unsecured debt
obligations of the issuer, Barclays Bank PLC, and are not, either
directly or indirectly, an obligation of or guaranteed by any third
party. An investment in the ETNs involves significant risks,
including possible loss of principal, and may not be suitable for
all investors. For more information on risks associated with the
ETNs, please see "Selected Risk Considerations" below and the risk
factors included in the relevant prospectus.
The prospectus relating to the relevant series of ETNs can be
found on EDGAR, the SEC website, at: www.sec.gov. The prospectus is
also available on the product website at www.iPathETN.com.
For further information, please instruct your
broker/advisor/custodian to email us at etndesk@barclays.com or
alternatively, your broker/custodian can call us at:
1-212-528-7990.
Selected Risk Considerations
An investment in the iPath 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 has
increased. Because the ETNs are subject to an investor fee and any
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.
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.
The ETNs offer exposure to futures contracts and not direct
exposure to physical commodities: The ETNs offer investors
exposure to the price of New York Mercantile Exchange-traded West
Texas Intermediate crude oil futures contracts and not to the spot
price of West Texas Intermediate crude oil. The price of a
commodity futures contract reflects the expected value of the
commodity upon delivery in the future, whereas the spot price of a
commodity reflects the immediate delivery value of the commodity. A
variety of factors can lead to a disparity between the expected
future price of a commodity and the spot price at a given point in
time, such as the cost of storing the commodity for the term of the
futures contract, interest charges to finance the purchase of the
commodity and expectations concerning supply and demand for the
commodity. The price movement of a futures contract is typically
correlated with the movements of the spot price of the reference
commodity, but the correlation is generally imperfect and price
moves in the spot market may not be reflected in the futures market
(and vice versa). Accordingly, the ETNs may underperform a similar
investment that reflects the return on the physical commodity.
Credit of Barclays Bank PLC: The ETNs are unsecured debt
obligations of the issuer, 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 and is subject
to the exercise of any U.K. Bail-In Power by the relevant U.K.
resolution authority under the U.K. Banking Act 2009, as amended
and the Financial Services and Markets Act 2000. 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, in the event Barclays Bank PLC were to
default on its obligations of become subject to the exercise of any
U.K. Bail-In Power (or any other resolution measure) by the
relevant U.K. resolution authority, you may not receive any amounts
owed to you under the terms of the ETNs.
Market and Volatility Risk: The prices of physical
commodities, including the commodities underlying the index
components, can fluctuate widely due to supply and demand
disruptions in major producing or consuming regions. Additionally,
the market value of the ETNs may be influenced by many
unpredictable factors including changes in supply and demand
relationships (including as a result of redemptions of the ETNs
and, in the case of the New ETNs, sales from inventory and
issuances of New ETNs), governmental policies and economic
events.
A Trading Market for the ETNs May Not Develop: Although
the ETNs are listed on NYSE Arca, a trading market for the ETNs may
not develop and 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 will not receive
any interest payments on the ETNs.
Restrictions on the Minimum Number of ETNs and Date
Restrictions for Redemptions: Except in the circumstances
described above, you must redeem at least 50,000 ETNs of the same
issue 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.
Barclays Bank PLC has filed a registration statement
(including a prospectus) with the SEC for the offering to which
this communication relates. Before you invest, you should
read the prospectus and other documents Barclays Bank PLC has filed
with the SEC for more complete information about the issuer and
this offering. You may get these documents for free by
visiting www.iPathETN.com or EDGAR on the SEC website at
www.sec.gov. Alternatively, Barclays Bank PLC will
arrange for Barclays Capital Inc. to send you the prospectus
if you request it by calling 212-528-7990, or you may request
a copy from any other dealer participating in the
offering.
The ETNs may be sold throughout the day on the exchange through
any brokerage account. There are restrictions on the minimum number
of ETNs you may redeem directly with the issuer as specified in the
applicable prospectus. 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.
The S&P GSCI Total Return Index and the S&P GSCI Crude
Oil Total Return Index (the "S&P GSCI Indices") are products of
S&P Dow Jones Indices LLC ("SPDJI"), and have been licensed for
use by Barclays Bank PLC. S&P® and GSCI® are
registered trademarks of Standard & Poor’s Financial
Services LLC ("SPFS"). These trademarks have been licensed to SPDJI
and its affiliates and sublicensed to Barclays Bank PLC for certain
purposes. The S&P GSCI Indices are not owned, endorsed, or
approved by or associated with Goldman, Sachs & Co. or its
affiliated companies. The ETNs are not sponsored, endorsed, sold or
promoted by SPDJI, SPFS, or any of their respective affiliates
(collectively, "S&P Dow Jones Indices"). S&P Dow Jones
Indices does not make any representation or warranty, express or
implied, to the owners of the ETNs or any member of the public
regarding the advisability of investing in securities generally or
in the ETNs particularly or the ability of the S&P GSCI Indices
to track general market performance.
© 2016 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
Barclays is a transatlantic consumer, corporate and
investment bank offering products and services across personal,
corporate and investment banking, credit cards and wealth
management, with a strong presence in our two home markets of the
UK and the US. With over 325 years of history and expertise in
banking, Barclays operates in over 40 countries and employs
approximately 130,000 people. Barclays moves, lends, invests and
protects money for customers and clients worldwide. For further
information about Barclays, please visit our website
home.barclays
View source
version on businesswire.com: http://www.businesswire.com/news/home/20161117006392/en/
Press:Barclays Bank PLCAndrew Smith, +1 212 412
7521andrew.x.smith@barclays.com
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