Barclays Bank PLC (“Barclays”) announced today that on December
26, 2019, the Cboe BZX exchange (the “Exchange”) issued a
deficiency notification letter (the “Deficiency Notification”). The
Deficiency Notification indicates that the iPath® S&P MLP ETN
(the “ETNs”) (Ticker: IMLP) do not meet the Exchange’s continuous
listing standard as set forth in Exchange Rule
14.11(d)(2)(K)(i)(b)(1)(A) (the “Rule”). The Rule states the
following:
“The criteria that no single component represent more than 25%
of the dollar weight of the index (including Derivative Securities
Products and Linked Securities) and, to the extent applicable, the
five highest dollar weighted components in the index (excluding
Derivative Securities Products and Linked Securities) cannot
represent more than 50% (or 60% for indexes with less than 25
components) of the dollar weight of the index, need only be
satisfied at the time the index is rebalanced…”
The ETNs are linked to the performance of the S&P MLP Index
(the “Index”). Currently, the five highest dollar weighted
components in the Index represent a total of 50.13%, which exceeds
the 50% threshold permitted by the Rule.
Barclays will submit a plan to the Exchange by February 10,
2020, outlining how the ETNs will gain compliance with the Rule.
Upon receipt of Barclays plan for compliance with the Rule, the
Exchange will take one of the following courses of action, pursuant
to Exchange Rule 14.12(f)(2)(B):
- grant Barclays an extension of time to gain compliance with the
Rule (not exceeding 180 calendar days from the date of the
Deficiency Notification);
- deny an extension and issue a Staff Delisting Determination
letter; or
- issue a Public Reprimand Letter, as defined in Exchange Rule
14.12(b)(9).
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.
Daily redemptions at the option of the holders of the ETNs
continue to stay open. The prospectus relating to the ETNs can be
found on EDGAR, the SEC website at: www.sec.gov, as well as at
www.iPathETN.com/IMLPprospectus.
Barclays Bank PLC is the issuer of iPath® ETNs and Barclays
Capital Inc. is the issuer’s agent in the distribution. 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.
About Barclays
Barclays is a transatlantic consumer and wholesale 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
83,500 people. Barclays moves, lends, invests and protects money
for customers and clients worldwide.
For further information about Barclays, please visit our website
www.barclays.com.
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.
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: 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 Payment on the ETNs is Linked to the VWAP Level, Not to the
Closing Level of the Index and Not to the Published Intraday
Indicative Value of the ETNs: Your payment at maturity or upon
early redemption is linked to the performance of the VWAP level, as
compared to the initial VWAP level. Although the VWAP level is
intended to track the performance of the Index, the calculation of
the VWAP level is different from the calculation of the official
closing level of the Index. Therefore, the payment at maturity or
early redemption of your ETNs, may be different from the payment
you would receive if such payment were determined by reference to
the official closing level of the Index.
Energy MLP Market Risks May Affect the Trading Value of the
ETNs and the Amount of Any Payment on the ETNs. We expect that
the level of the Index will fluctuate in accordance with changes in
the financial condition of the Index Constituents and certain other
factors. The financial condition of the Index Constituents may
become impaired or the general condition of the energy MLP market
may deteriorate, either of which may cause a decrease in the level
of the Index and thus in the value of the ETNs. The ETNs are
susceptible to general market fluctuations and to volatile
increases and decreases in value, as market confidence in and
perceptions regarding the Index Constituents change. Investor
perceptions of the Index Constituents are based on various and
unpredictable factors, including expectations regarding government,
economic, monetary, tax and fiscal policies, inflation and interest
rates, economic expansion or contraction, and global or regional
political, economic, and banking crises. The level of the Index is
expected to fluctuate until the maturity date.
No Guaranteed Coupon Payments: You are not guaranteed to receive
coupon payments on the ETNs. You will receive a coupon payment on a
coupon payment date only to the extent that the accrued dividend
exceeds the accrued investor fee on the relevant coupon valuation
date. The amount of the accrued dividend on any coupon valuation
date depends in part on the aggregate cash value of distributions
that a reference holder would have been entitled to receive in
respect of the index constituents prior to the relevant coupon
valuation date.
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.
Concentration Risk: The index constituents are companies in the
Energy Sector or Gas Utilities Sector, as determined by the GICS®
classification system. In addition, many of the index constituents
are smaller, non-diversified businesses that are exposed to the
risks associated with such businesses, including the lack of
capital funding to sustain or grow businesses and potential
competition from larger, better financed and more diversified
businesses. The ETNs are susceptible to general market fluctuations
in the energy and gas MLP market and to volatile increases and
decreases in value, as market confidence in, and perceptions
regarding the index constituents change. Your investment may
therefore carry risks similar to a concentrated securities
investment in one industry or sector.
A Trading Market for the ETNs May Not Develop: Although the ETNs
are listed on a U.S. national securities exchange, 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 50,000 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 product prospectus.
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.
Barclays Capital Inc., and its affiliates do not provide tax
advice, and nothing contained herein should be construed to be tax
advice. Please be advised that any discussion of U.S. tax matters
contained herein (including any attachments): (i) is not intended
or written to be used, and cannot be used, by you for the purpose
of avoiding U.S. tax-related penalties, and (ii) was written to
support the promotion of marketing of the transactions or other
matters addressed herein. Accordingly, you should seek advice based
on your particular circumstances from an independent tax
advisor.
The Index is a product of S&P Dow Jones Indices LLC and has
been licensed for use by Barclays Bank PLC. The ETNs are not
sponsored, endorsed, sold or promoted by S&P Dow Jones Indices
LLC or any of its 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 Index to track general market performance.
© 2020 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
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200107006052/en/
Press: Danielle Popper +1 212 526 5963
Danielle.Popper@barclays.com
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