NEW YORK--(BUSINESS WIRE)--Barclays Bank PLC (“Barclays”) announced today the launch of 15 exchange-traded notes (the “New ETNs”) on the NYSE Arca exchange, each of which is designed to provide investors with exposure to the performance of a subindex of the Bloomberg Commodity Index Total ReturnSM. Barclays also announced today that it plans to delist from the NYSE Arca exchange and suspend sales from inventory and further issuances of certain existing commodity ETNs (the “Existing ETNs” and, together with the New ETNs, the “ETNs”), effective after the close of trading on April 12, 2018 (the “Delisting Date”).
The New ETNs are expected to begin trading on the NYSE Arca exchange on January 18, 2018 under the ticker symbols listed in the table below:
| New ETN Name |
ETN |
Underlying Index Name | Index Ticker | |||||||||
| iPath® Series B Bloomberg Agriculture Subindex Total ReturnSM ETN | JJAB | Bloomberg Agriculture Subindex Total ReturnSM | BCOMAGTR | |||||||||
| iPath® Series B Bloomberg Aluminum Subindex Total ReturnSM ETN | JJUB | Bloomberg Aluminum Subindex Total ReturnSM | BCOMALTR | |||||||||
| iPath® Series B Bloomberg Coffee Subindex Total ReturnSM ETN | BJO | Bloomberg Coffee Subindex Total ReturnSM | BCOMKCTR | |||||||||
| iPath® Series B Bloomberg Copper Subindex Total ReturnSM ETN | JJCB | Bloomberg Copper Subindex Total ReturnSM | BCOMHGTR | |||||||||
| iPath® Series B Bloomberg Cotton Subindex Total ReturnSM ETN | BALB | Bloomberg Cotton Subindex Total ReturnSM | BCOMCTTR | |||||||||
| iPath® Series B Bloomberg Energy Subindex Total ReturnSM ETN | JJEB | Bloomberg Energy Subindex Total ReturnSM | BCOMENTR | |||||||||
| iPath® Series B Bloomberg Grains Subindex Total ReturnSM ETN | JJGB | Bloomberg Grains Subindex Total ReturnSM | BCOMGRTR | |||||||||
| iPath® Series B Bloomberg Industrial Metals Subindex Total ReturnSM ETN | JJMB | Bloomberg Industrial Metals Subindex Total ReturnSM | BCOMINTR | |||||||||
| iPath® Series B Bloomberg Livestock Subindex Total ReturnSM ETN | COWB | Bloomberg Livestock Subindex Total ReturnSM | BCOMLITR | |||||||||
| iPath® Series B Bloomberg Nickel Subindex Total ReturnSM ETN | BJJN | Bloomberg Nickel Subindex Total ReturnSM | BCOMNITR | |||||||||
| iPath® Series B Bloomberg Platinum Subindex Total ReturnSM ETN | PGMB | Bloomberg Platinum Subindex TR | BCOMPLTR | |||||||||
| iPath® Series B Bloomberg Precious Metals Subindex Total ReturnSM ETN | JJPB | Bloomberg Precious Metals Subindex Total ReturnSM | BCOMPRTR | |||||||||
| iPath® Series B Bloomberg Softs Subindex Total ReturnSM ETN | JJSB | Bloomberg Softs Subindex Total ReturnSM | BCOMSOTR | |||||||||
| iPath® Series B Bloomberg Sugar Subindex Total ReturnSM ETN | SGGB | Bloomberg Sugar Subindex Total ReturnSM | BCOMSBTR | |||||||||
| iPath® Series B Bloomberg Tin Subindex Total ReturnSM ETN | JJTB | Bloomberg Tin Subindex Total ReturnSM | BCOMSNTR | |||||||||
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 business day on or after their inception until maturity. The subindices underlying the New ETNs reflect the returns that are potentially available through an unleveraged investment in the respective commodity futures contracts comprising the relevant subindex plus the rate of interest that could be earned on cash collateral invested in specified Treasury Bills.
The Existing ETNs that Barclays plans to delist currently trade on NYSE Arca under the ticker symbols listed in the table below. After the close of trading on the Delisting Date, Barclays plans to suspend, until further notice, any further sales from inventory and any further issuances of each series of the Existing ETNs. Some of the Existing ETNs listed below may already be subject to this suspension.
| Existing ETN Name |
ETN |
Underlying Index Name | Index Ticker | |||||||||
| iPath® Bloomberg Agriculture Subindex Total ReturnSM ETN | JJA | Bloomberg Agriculture Subindex Total ReturnSM | BCOMAGTR | |||||||||
| iPath® Bloomberg Aluminum Subindex Total ReturnSM ETN | JJU | Bloomberg Aluminum Subindex Total ReturnSM | BCOMALTR | |||||||||
| iPath® Bloomberg Coffee Subindex Total ReturnSM ETN | JO | Bloomberg Coffee Subindex Total ReturnSM | BCOMKCTR | |||||||||
| iPath® Bloomberg Copper Subindex Total ReturnSM ETN | JJC | Bloomberg Copper Subindex Total ReturnSM | BCOMHGTR | |||||||||
| iPath® Bloomberg Cotton Subindex Total ReturnSM ETN | BAL | Bloomberg Cotton Subindex Total ReturnSM | BCOMCTTR | |||||||||
| iPath® Bloomberg Energy Subindex Total ReturnSM ETN | JJE | Bloomberg Energy Subindex Total ReturnSM | BCOMENTR | |||||||||
| iPath® Bloomberg Grains Subindex Total ReturnSM ETN | JJG | Bloomberg Grains Subindex Total ReturnSM | BCOMGRTR | |||||||||
| iPath® Bloomberg Industrial Metals Subindex Total ReturnSM ETN | JJM | Bloomberg Industrial Metals Subindex Total ReturnSM | BCOMINTR | |||||||||
| iPath® Bloomberg Livestock Subindex Total ReturnSM ETN | COW | Bloomberg Livestock Subindex Total ReturnSM | BCOMLITR | |||||||||
| iPath® Bloomberg Nickel Subindex Total ReturnSM ETN | JJN | Bloomberg Nickel Subindex Total ReturnSM | BCOMNITR | |||||||||
| iPath® Bloomberg Platinum Subindex Total ReturnSM ETN | PGM | Bloomberg Platinum Subindex TR | BCOMPLTR | |||||||||
| iPath® Bloomberg Precious Metals Subindex Total ReturnSM ETN | JJP | Bloomberg Precious Metals Subindex Total ReturnSM | BCOMPRTR | |||||||||
| iPath® Bloomberg Softs Subindex Total ReturnSM ETN | JJS | Bloomberg Softs Subindex Total ReturnSM | BCOMSOTR | |||||||||
| iPath® Bloomberg Sugar Subindex Total ReturnSM ETN | SGG | Bloomberg Sugar Subindex Total ReturnSM | BCOMSBTR | |||||||||
| iPath® Bloomberg Tin Subindex Total ReturnSM ETN | JJT | Bloomberg Tin Subindex Total ReturnSM | BCOMSNTR | |||||||||
| iPath® S&P GSCI® Crude Oil Total Return Index ETN | OIL | S&P GSCI® Crude Oil Total Return Index | SPGSCLTR | |||||||||
Following the delisting, the Existing ETNs will remain outstanding, though they will no longer be listed for trading on any national securities exchange. At such point, the ETNs may trade, if at all, on an over-the-counter basis, the secondary market for the Existing ETNs may experience a significant drop in liquidity, and holders of the Existing ETNs may not be able to trade or sell their Existing ETNs easily.
The Existing ETN holders’ option to require Barclays to repurchase the Existing ETNs will not be affected by this delisting. Currently, holders of the Existing ETNs are required to redeem a minimum number of Existing ETNs of the same series at one time in order to exercise the right to redeem the Existing ETNs directly with the issuer. Barclays will temporarily waive the required minimum redemption size for each series of Existing ETNs. The waiver will be irrevocable and effective after the close of trading on January 17, 2018 for the next three years until and including January 19, 2021, unless extended by Barclays at its sole discretion. Any future modification, including extending the term of the waiver or temporarily or permanently reducing, waiving or otherwise modifying the minimum redemption size, will be applied on a consistent basis for all holders of that series of Existing ETNs at the time such modification becomes effective.
Holders of the Existing ETNs that wish to sell their Existing ETNs and/or purchase New ETNs may take any of the following actions:
- Sell Existing ETNs on the secondary market, to the extent that such a secondary market exists, at the prevailing trading price on the exchange until the Delisting Date or in an over-the-counter transaction after the Delisting Date, and/or purchase New ETNs on the secondary market, to the extent that such a secondary market exists;
- Put Existing ETNs to Barclays with no minimum redemption size and simultaneously purchase New ETNs linked to the same subindices as the Existing ETNs being sold 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 Existing ETNs, the holder would receive a number of New ETNs equal to the aggregate daily redemption value of the redeemed Existing ETNs, rounded to the nearest full New ETN, with a residual cash payment for any “partial” remaining Existing ETNs. In the case of the iPath® S&P GSCI® Crude Oil Total Return Index ETN, a Net Settlement will be permitted with respect to the iPath® Series B S&P GSCI® Crude Oil ETN launched on November 17, 2016. Holders who wish to effect a Net Settlement must instruct their broker or other person through whom they hold their Existing 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 Existing 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.
- Put Existing ETNs to Barclays under the early redemption option for the applicable cash value with no minimum redemption size without simultaneously purchasing New ETNs or purchase New ETNs from Barclays without simultaneously redeeming Existing ETNs.
Holders of Existing ETNs are not required to take any of the actions discussed in this announcement and may choose to continue to hold their Existing ETNs until their respective maturity date.
Any redemption of Existing ETNs is subject to the conditions and procedures described in the prospectus for the relevant series of Existing ETNs and will be valued using the applicable daily redemption value or closing indicative value on the valuation date for the transaction, in each case in accordance with the prospectus for the relevant series of Existing ETNs. The procedures for redemption include delivering a notice of redemption and signed confirmation to Barclays prior to the relevant valuation date within the time frames set forth in the prospectus and instructing the DTC custodian at which the Existing ETNs are held to book and settle a delivery vs. payment trade with respect to the Existing ETNs.
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 each series of ETNs can be found on EDGAR, the SEC website at: www.sec.gov, as well as on the product website at the links listed below for the relevant series:
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.
Selected Risk Considerations
An investment in the 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 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.
Issuer Redemption: If specified in the applicable prospectus, 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 commodities futures contracts and not to the spot price of commodities. 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.
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 sales from inventory and issuances of ETNs), governmental policies and economic events.
Concentration Risk: Because the ETNs are linked to an index composed of futures contracts on a single commodity or in only one commodity sector, the ETNs are less diversified than other funds. The ETNs can therefore experience greater volatility than other funds or investments.
A Trading Market for the ETNs May Not Develop: Although the ETNs are currently 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, your right to redeem your ETNs on any redemption date may be subject to a requirement that you redeem a certain minimum number of ETNs of the same series. 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. 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.
“Bloomberg®”, “Bloomberg Commodity IndexSM”, “Bloomberg Commodity Index Total ReturnSM”, “Bloomberg Agriculture Subindex Total ReturnSM”, “Bloomberg Aluminum Subindex Total ReturnSM”, “Bloomberg Coffee Subindex Total ReturnSM”, “Bloomberg Copper Subindex Total ReturnSM”, “Bloomberg Cotton Subindex Total ReturnSM”, “Bloomberg Energy Subindex Total ReturnSM”, “Bloomberg Grains Subindex Total ReturnSM”, “Bloomberg Industrial Metals Subindex Total ReturnSM”, “Bloomberg Livestock Subindex Total ReturnSM”, “Bloomberg Nickel Subindex Total ReturnSM”, “Bloomberg Platinum Subindex Total ReturnSM”, “Bloomberg Precious Metals Subindex Total ReturnSM”, “Bloomberg Softs Subindex Total ReturnSM”, “Bloomberg Sugar Subindex Total ReturnSM”, “Bloomberg Tin Subindex Total ReturnSM” and “BCOM” are service marks of Bloomberg Finance L.P. and its affiliates (collectively, "Bloomberg") and have been licensed for use for certain purposes by Barclays Bank PLC. Any ETNs based on the Bloomberg Commodity Indices are not sponsored, endorsed, sold or promoted by Bloomberg, UBS AG, UBS Securities LLC ("UBS"), or any of their subsidiaries or affiliates. None of Bloomberg, UBS AG, UBS Securities or any of their subsidiaries or affiliates makes any representation or warranty, express or implied, to the owners of or counterparties to the ETNs or any member of the public regarding the advisability of investing in securities or commodities generally or in the ETNs particularly.
The S&P GSCI Crude Oil Total Return Index (the “S&P GSCI Index”) is the product of S&P Dow Jones Indices LLC (“SPDJI”), and has 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.
© 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 |
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.
