Barclays announced today that it will implement a 1 for 4
reverse split of its iPath® S&P 500 VIX Short-Term Futures
Exchange Traded Notes (the “ETNs”) effective Wednesday, August 23,
2017. The ETNs trade on the NYSE Arca stock exchange under the
ticker symbol VXX.
ETN Name Ticker Exchange
iPath® S&P 500 VIX Short-Term
FuturesTM ETN (“VXX ETNs”)
VXX
NYSE Arca
Barclays Bank PLC has the right (but no obligation) to initiate
such a reverse split of each series of ETNs if the closing
indicative value of the ETNs falls below $25.00 on any business
day, as described in the pricing supplement relating to the ETNs.
On August 9, 2017, the closing indicative value of the VXX ETNs was
$11.55.
The closing indicative value of the ETNs on August 22, 2017 will
be multiplied by four to determine the reverse-split adjusted
closing indicative value of the ETNs. The reverse split will be
effective at the open of trading on August 23, 2017, and the ETNs
will begin trading on NYSE Arca on a reverse-split adjusted basis
on such date. The reverse-split adjusted ETNs will have a new
CUSIP, but will retain the same ticker symbol.
Investors who held the ETNs as of the close of business on
August 22, 2017, and hold a number of ETNs that is not divisible by
four will receive one reverse-split adjusted ETN for every four
ETNs held on August 22, 2017 and a cash payment for any odd number
of ETNs remaining (the “partials”). The cash amount due on any
partials will be determined on August 29, 2017, based on the
closing indicative value of the reverse-split adjusted ETNs on such
date and will be paid by Barclays Bank PLC on September 1,
2017.
An investment in iPath ETNs involves significant risks and
may not be suitable for all investors. The ETNs are riskier than
ordinary unsecured debt securities and have no 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 prospectus.
For more information regarding the reverse split process,
including how the reverse-split adjusted value is determined, see
the pricing supplement relating to the ETNs under the heading
“Specific Terms of the ETNs—Split or Reverse Split.” The pricing
supplement relating to the 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/vxxprospectus.
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 (the “ETNs”)
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.
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. 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, you may not receive any amounts owed to
you under the terms of the ETNs.
The Performance of the Underlying Indices are
Unpredictable: An investment in the ETNs is subject to risks
associated with fluctuations, particularly a decline, in the
performance of the underlying index. Because the performance of
such index is linked to futures contracts on the CBOE® Volatility
Index (the “VIX Index”), the performance of the underlying index
will depend on many factors including, the level of the S&P
500®, the prices of options on the S&P 500®, and the level of
the VIX Index which may change unpredictably, affecting the value
of futures contracts on the VIX Index and, consequently, the level
of the underlying index. Additional factors that may contribute to
fluctuations in the level of such index include prevailing market
prices and forward volatility levels of the U.S. stock markets and
the equity securities included in the S&P 500®, the prevailing
market prices of options on the VIX Index, relevant futures
contracts on the VIX Index, or any other financial instruments
related to the S&P 500® and the VIX Index, interest rates,
supply and demand in the listed and over-the-counter equity
derivative markets as well as hedging activities in the
equity-linked structured product markets.
Your ETNs Are Not Linked to the VIX Index: The value of
your ETNs will be linked to the value of the underlying index, and
your ability to benefit from any rise or fall in the level of the
VIX Index is limited. The index underlying your ETNs is based upon
holding a rolling long position in futures on the VIX Index. These
futures will not necessarily track the performance of the VIX
Index. Your ETNs may not benefit from increases in the level of the
VIX Index because such increases will not necessarily cause the
level of VIX Index futures to rise. Accordingly, a hypothetical
investment that was linked directly to the VIX Index could generate
a higher return than your ETNs.
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, 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.
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 may not receive
any interest payments on the ETNs.
Restrictions on the Minimum Number of ETNs and Date
Restrictions for Redemptions: You must redeem at least 25,000
ETNs of the same series 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. 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 500 VIX Futures Indices are products of S&P Dow
Jones Indices LLC ("SPDJI"). S&P®, S&P 500®, and "S&P
500 VIX Short-Term FuturesTM", "S&P 500 VIX Mid-Term FuturesTM"
and "S&P 500® Dynamic VIX FuturesTM" are trademarks of
Standard & Poor’s Financial Services LLC ("SPFS"). VIX® is
a registered trademark of Chicago Board Options Exchange,
Incorporated ("CBOE"). These trademarks have been licensed to
S&P Dow Jones Indices LLC ("SPDJI") and its affiliates, and
sublicensed to Barclays Bank PLC for certain purposes. The ETNs are
not sponsored, endorsed, sold or promoted by SPDJI, SPFS, CBOE 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 500 VIX Futures Indices to track general
market performance.
© 2017 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.
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 85,000
people. Barclays moves, lends, invests and protects money for
customers and clients worldwide.
NOT FDIC INSURED · NO BANK GUARANTEE · MAY
LOSE VALUE
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version on businesswire.com: http://www.businesswire.com/news/home/20170809006219/en/
Barclays Bank PLCAndrew Smith,
+1-212-412-7521andrew.x.smith@barclays.com
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