Barclays Bank PLC (“Barclays”) announced today that it expects the New
York Stock Exchange Arca (the “NYSE Arca”) to commence proceedings to
delist the iPath® Bloomberg Natural Gas Subindex Total ReturnSM
Exchange Traded Notes (the “ETNs”) (Ticker: GAZ) from the NYSE Arca. The
delisting decision was reached because such condition exists, which in
the opinion of NYSE Arca, makes further dealings on the exchange
inadvisable pursuant to NYSE Arca Rule 5.2-E(j)(6)(B)(II)(2)(b)(iii).
Specifically, the Notes are no longer suitable for listing based on
abnormally low trading prices. The Index underlying the ETNs is the
Bloomberg Natural Gas Subindex Total ReturnSM (the "Index"),
with Bloomberg ticker BCOMNGTR.
Barclays expects the NYSE Arca to commence delisting proceedings in the
next several days and the suspension of trading for the ETNs today.
Following the delisting, the ETNs may trade, if at all, on an
over-the-counter basis, the secondary market for the ETNs may experience
a significant drop in liquidity, and holders of the ETNs may not be able
to trade or sell their ETNs easily.
Barclays previously issued investor guidance notices on December 8,
2017, March 8, 2017, December 22, 2015 and November 9, 2015 regarding
the decline in the daily redemption value of the ETNs and the likelihood
of premiums and discounts in the secondary market prices to persist.
The ETN holders’ option to require Barclays to repurchase the ETNs will
not be affected by this delisting. Barclays previously announced the
waiver of the minimum early redemption size of 50,000 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). The
minimum early redemption size for any other day of the month was reduced
to 5,000 ETNs from 50,000 ETNs. These changes took effect on March 9,
2017 and will be effective for the next three years ending on and
including March 9, 2020 unless extended by Barclays at its sole
discretion.
The obligation of Barclays to accept any early redemption of ETNs is
subject to the procedures set forth in the section “Specific Terms of
the ETNs—Early Redemption Procedures” in the prospectus relating to the
ETNs. These procedures 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 ETNs are held to book and settle a delivery
vs. payment trade with respect to the ETNs. Please refer to the press
release on March 8, 2017 for more details.
Barclays also announced the listing of a new ETN (the “New ETNs”)
(Ticker: GAZB) linked to the same Index earlier this year. The New ETNs
offer a similar exposure as the existing ETNs (the “Old ETNs”), but will
include certain differences, including a reduced investor fee and an
issuer redemption feature. Please refer to the associated press release
on March 8, 2017 for more details.
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 (subject to relevant trading
restrictions on the Old ETNs);
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 prospectus for the Old ETNs. Holders may
also contact Barclays at etndesk@barclays.com
or 1-212-528-7990 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.
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 on the respective product websites at www.iPathETN.com/GAZprospectus
and www.iPathETN.com/GAZBprospectus.
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 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.
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 Henry Hub Natural gas
futures contracts and not to the spot price of Henry Hub Natural Gas.
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. 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.
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 the minimum number of ETNs specified in the applicable
prospectus 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.
“Bloomberg®”, “Bloomberg Commodity IndexSM”,
“Bloomberg Commodity Index Total ReturnSM”, “Bloomberg
Natural Gas 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.
© 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.
|
|
|
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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20171222005262/en/
Copyright Business Wire 2017
