Barclays Bank PLC (“Barclays”)
announced an investor guidance notification today regarding the
iPath® S&P GSCI® Crude Oil Total Return Index ETN (Ticker:
OILNF/OILND) (the “ETNs”). The ETNs were de-listed from NYSE Arca
on April 12, 2018 and currently trade in over-the-counter markets
(the “OTC Markets”). Barclays previously announced in its investor
guidance issued on March 17, 2020 that a material premium had
developed in the trading price of the ETNs in relation to their
intraday indicative value and of the potential for the daily
redemption value of these ETNs to drop to $0. Barclays announced on
April 17, 2020, that the ETNs would undergo a reverse split, which
was effective on May 1, 2020 (the “Reverse Split”). Please refer to
the press releases dated March 17, 2020 and April 17, 2020 on the
Barclays iPath website for further details.
Following the Reverse Split on May 1, 2020, (i) the CUSIP for
the ETNs changed from 06738C786 to 06738C760 and (ii) the ETNs
began trading under the ticker symbol “OILND”.1 On June 1, 2020,
the ticker symbol for the ETNs will revert back to “OILNF.”
Since March 17, 2020, the ETNs have experienced a persistent and
rapid decline in value as the ETNs’ daily redemption value dropped
100% between March 17, 2020 to April 21, 2020, from $71.84 to $0.
The daily redemption value of the ETNs have remained at $0 as of
May 7, 2020.
A material premium has developed in the trading price of the
ETNs on the OTC Market in relation to their intraday indicative
value. From April 1, 2020 to May 7 , 2020, the daily redemption
value of the ETNs decreased by 100%, from $29.2320 to $0 per ETN,
while the closing price of the ETNs on the OTC Market only
decreased by approximately 55.4% from $100.80 to $45.00 per ETN.
The closing price of the ETNs on the OTC Market as of May 7, 2020,
reflected a $45 premium with respect to its corresponding daily
Investors should exercise extreme caution before purchasing
or selling ETNs at a market price that reflects a premium over the
intraday indicative value or daily redemption value, as the case
may be. The intraday indicative value of the ETNs is intended
to provide investors with an approximation of the effect that
changes in the level of the Index during the current trading day
would have on the daily redemption value of the ETNs from the
previous day. The intraday indicative value of the ETNs is
calculated and published with a frequency of at least every 15
seconds throughout the trading day. The daily redemption value is
the closing value of the ETNs calculated by us on a daily basis and
is used to determine the payment at maturity or upon early
redemption. The secondary market for the ETNs has been volatile and
unpredictable, and investors should not assume that the ETNs will
continue to trade at a premium in relation to their intraday
indicative value. As a result, if investors purchase the ETNs at
a price which reflects a premium over the intraday indicative value
or daily redemption value, as the case may be, they may experience
a significant loss if they sell the ETNs at a time when such
premium is no longer present, if they redeem the ETNs at the daily
redemption value or if they hold the ETNs until maturity.
For more information on what a premium in the market prices
represents, please refer to the iPath website under “About ETNs.”
Investors are also encouraged to refer to the prospectus relating
to the respective ETNs for risk factors relating to the market
value of the ETNs, including the risks associated with a premium in
market prices on the OTC Market.
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.
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.
The prospectus for the ETNs to which this communication relates
can be found at:
Barclays is the issuer of iPath® ETNs and Barclays Capital Inc.
is the Issuer’s agent in the distribution. Please contact Barclays
for further questions:
- Directly contact Barclays at email@example.com or
1-212-528-7990 to obtain further information
- Instruct your broker/advisor/custodian to email us at
firstname.lastname@example.org or to call us at: 1-212-528-7990
You may call in together with your broker/advisor/custodian or
have them speak to us on your behalf.
Barclays is a British universal bank. We are diversified by
business, by different types of customer and client, and geography.
Our businesses include consumer banking and payments operations
around the world, as well as a top-tier, full service, global
corporate and investment bank, all of which are supported by our
service company which provides technology, operations and
functional services across the Group.
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 applicable 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 level has increased or decreased, as the case may be.
Because the ETNs are subject to an investor fee and 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.
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 or the U.S. Treasury market, 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: 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: 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: Except with respect to the
circumstances described above or as otherwise specified in the
applicable product prospectus, you must redeem at least the minimum
number of ETNs specified in the applicable product 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 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
The S&P GSCI Total Return Index and the S&P GSCI Crude
Oil Total Return Index (the “S&P GSCI Indices”) are products of
S&P Dow Jones Indices LLC (“SPDJI”), and have 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.
© 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
NOT FDIC INSURED · NO BANK GUARANTEE · MAY
________________ 1 The temporary ticker change with respect to
the ETNs is a result of a procedural requirement implemented by the
Financial Industry Regulatory Authority, which requires securities
that undergo reverse splits to temporarily trade under a new CUSIP
for a period of 20 business days.
version on businesswire.com: https://www.businesswire.com/news/home/20200508005506/en/
Press: Danielle Popper +1 212 526 5963
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