Barclays Bank PLC (“Barclays”) announced today the upcoming
launch in early 2018 of the iPath® Series B S&P 500® VIX
Short-Term FuturesTM ETNs (Ticker: VXXB) and the iPath® Series B
S&P 500® VIX Mid-Term FuturesTM ETNs (Ticker: VXZB) (together,
the “New ETNs”).
The New ETNs are proposed to be launched in advance of the
upcoming scheduled maturity of the iPath® S&P 500® VIX
Short-Term FuturesTM ETNs (Ticker: VXX) and the iPath® S&P 500®
VIX Mid-Term FuturesTM ETNs (Ticker: VXZ) (together, the “Maturing
ETNs”). The final redemption date of the Maturing ETNs is January
30, 2019 and both the New ETNs and the Maturing ETNs will trade in
parallel until the final redemption date of the Maturing ETNs. The
New ETNs will feature an investor fee of 0.89% per annum and will
also be redeemable at the sole discretion of Barclays on any
trading day on or after their inception until maturity. Barclays
intends that each of the New ETNs will be issued with a closing
indicative value on its initial valuation date that is equal to
that of the corresponding Maturing ETNs on such date. Please refer
to the preliminary ETN prospectus for further details.
Barclays also announced a waiver of the minimum early redemption
size of 25,000 ETNs on the Maturing ETNs for any redemption order
that is paired with a simultaneous purchase of an equivalent amount
of the corresponding New ETNs from Barclays. No additional purchase
or redemption fees will be charged by Barclays for paired orders to
migrate from the Maturing ETNs to the corresponding New ETNs. This
waiver will be in place until the maturity of the Maturing
ETNs.
Holders of the Maturing ETNs are not required to take any action
as a result of this announcement and may choose to continue to hold
or trade their Maturing ETNs until expiration.
Holders of the Maturing ETNs that wish to sell their Maturing
ETNs and/or purchase New ETNs may take any of the following
actions:
1) Sell Maturing ETNs
and/or purchase New ETNs on the secondary market at the prevailing
trading price on the exchange. 2)
Put Maturing ETNs to Barclays with no
minimum early redemption size and simultaneously purchase an
equivalent amount of the corresponding New ETNs from Barclays, with
each transaction having the same valuation date and settlement date
(a “Net Settlement”). In this case, upon redemption of its Maturing
ETNs, the holder would receive a number of New ETNs equal to the
number of redeemed Maturing ETNs. Holders who wish to effect a Net
Settlement must instruct their broker or other person through whom
they hold their Maturing 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 Maturing 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 Maturing ETNs to Barclays under the early redemption option
(subject to the existing minimum early redemption size) without
simultaneously purchasing New ETNs from Barclays or purchase New
ETNs from Barclays without simultaneously redeeming Maturing ETNs,
in each case for the applicable cash value.
Any redemption of Maturing ETNs or purchase 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
closing indicative value on the valuation date for the transaction,
with applicable purchase or redemption fees except as described
above for paired orders, 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.
The iPath® Series B S&P 500® VIX Short-Term FuturesTM ETNs
are designed to provide investors with exposure to the performance
of the S&P 500® VIX Short-Term FuturesTM Index TR, which
measures the return from a daily rolling long position in the front
and second month futures contracts on the CBOE Volatility Index®
(the “VIX Index”) traded on the Chicago Board Options Exchange
(“CBOE”). The iPath® Series B S&P 500® VIX Mid-Term FuturesTM
ETNs are designed to provide investors with exposure to the
performance of the S&P 500® VIX Mid-Term FuturesTM Index TR,
which measures the return from a daily rolling long position in the
fourth, fifth, sixth and seventh month futures contracts on the VIX
Index traded on the CBOE.
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. The ETNs are intended to be trading tools for sophisticated
investors to manage daily trading risks. The ETNs may not be
suitable for all investors and should be used only by investors
with the sophistication and knowledge necessary to understand the
risks inherent in the underlying index, the futures contracts that
the relevant underlying index tracks and investments in volatility
as an asset class generally. Investors should consult with their
broker or financial advisor when making an investment decision and
to evaluate their investment in the ETNs and should actively manage
and monitor their investments in the ETNs, as frequently as daily.
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 prospectuses
relating to the Maturing ETNs are also available on the product
website at www.iPathETN.com/VXXprospectus and
www.iPathETN.com/VXZprospectus.
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.
Issuer Redemption: If specified in the applicable
prospectus, Barclays Bank PLC will have the right to redeem or call
a series of 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 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 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: Subject to the terms described in
the applicable prospectus, 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.
© 2018 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
About Barclays
Barclays is a transatlantic consumer and wholesale bank with
global reach, 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.
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version on businesswire.com: http://www.businesswire.com/news/home/20180104005712/en/
Barclays Bank PLCBrittany Berliner,
+1-212-526-4894Brittany.Berliner@barclays.com
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