Barclays Suspends Until Further Notice Further Sales and Issuances of Two Series of iPath® ETNs (the “ETNs”)

Rhea-AI Summary

Barclays Bank PLC has suspended further sales and issuances of the iPath^® Pure Beta Crude Oil ETNs (OIL) and the iPath^® Series B S&P 500 VIX Short-Term Futures ETNs (VXX) effective March 14, 2022, due to insufficient issuance capacity. This suspension may lead to fluctuations in the trading value of the ETNs, which could trade at a premium or discount. Daily redemptions by holders will remain unaffected. Barclays plans to resume sales when capacity allows. Investors should be aware of the risks associated with these ETNs, including the potential for significant losses.

Positive

• None.

Negative

• Suspension of sales and issuances of ETNs due to insufficient issuance capacity could lead to price fluctuations.
• Possible trading at a premium or discount compared to indicative value due to supply and demand imbalance.
• Investors face significant risks including the potential loss of principal without any protection.

NEW YORK--(BUSINESS WIRE)-- Barclays Bank PLC (“ Barclays”) announced today that it has suspended, until further notice, any further sales from inventory and any further issuances of each of the iPath ^® Pure Beta Crude Oil ETNs due April 18, 2041 (Ticker: OIL; Exchange: NYSE Arca) and the iPath ^® Series B S&P 500 ^® VIX Short-Term Futures ^TM ETNs due January 23, 2048 (Ticker: VXX; Exchange: CBOE BZX Exchange), in each case effective as of the open of trading on Monday, March 14, 2022. This suspension may cause fluctuations in the trading value of such ETNs. Daily redemptions at the option of holders of the ETNs will not be affected by this suspension.

This suspension is being imposed because Barclays does not currently have sufficient issuance capacity to support further sales from inventory and any further issuances of the ETNs. These actions are not the result of the crisis in Ukraine or any issue with the market dynamics in the underlying index components. Barclays expects to reopen sales and issuances of the ETNs as soon as it can accommodate additional capacity for future issuances.

The market value of the ETNs may be influenced by, among other things, the levels of supply and demand for such ETNs. It is possible that this suspension may influence the market value of the ETNs. Barclays believes that the above-mentioned limitations on issuance and sale may cause an imbalance of supply and demand in the secondary market for the ETNs, which may cause the ETNs to trade at a premium or discount in relation to their indicative value. Therefore, any purchase of the ETNs in the secondary market may be at a purchase price significantly different from their indicative value. The pricing supplement relating to the ETNs can be found on EDGAR, the SEC website at www.sec.gov, as well as on the product website at ipathetn.barclays.

An investment in the ETNs involves significant risks and may not be suitable for all investors. The ETNs are riskier than ordinary unsecured debt securities and do not benefit from any 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 pricing supplement.

The pricing supplements for the ETNs to which this communication relates can be found at:
http://ipathetn.barclays/oilprospectus
http://ipathetn.barclays/vxxprospectus

Barclays is the issuer of the ETNs and Barclays Capital Inc. is the issuer’s agent in the distribution. Please contact Barclays for further questions:

• Financial advisors: Directly contact Barclays at etndesk@barclays.com or 1-212-528-7990 to obtain further information.
• Individual investors: Instruct your broker/advisor/custodian to email us at etndesk@barclays.com 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.

About Barclays

Barclays is a British universal bank. We are diversified by business, by different types of customers and clients, and by geography. Our businesses include consumer banking and payments operations around the world, as well as a full-service corporate and investment bank. For further information about Barclays, please visit our website www.barclays.com.

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 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 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, if 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.

Pure Beta Series 2 Methodology: The Barclays Pure Beta Series 2 Methodology seeks to mitigate distortions in the commodities markets associated with investment flows and supply and demand distortions. However, there is no guarantee that the Pure Beta Series 2 Methodology will succeed in these objectives and an investment in the ETNs linked to indices using this methodology may underperform compared to an investment in a traditional commodity index linked to the same commodities.

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.

Your ETNs Are Not Linked to the VIX Index: The iPath^® Series B S&P 500^® VIX Short-Term Futures^TM ETNs offer exposure to futures contracts of specified maturities on the VIX Index and not direct exposure to the VIX Index or its spot level. These futures contracts will not track the performance of the VIX Index. In addition, the nature of the VIX futures market has historically resulted in a significant cost to “roll” a position in the VIX futures contracts underlying the index. As a result, the levels of the underlying index, which tracks a rolling position in specified VIX futures contracts, may experience significant declines as a result of these roll costs, especially over a longer period. The VIX Index will perform differently than the index underlying such ETNs and, in certain cases, may have positive performance during periods, while the index underlying such ETNs is experiencing poor performance. In turn, an investment in such ETNs may experience a significant decline in value over time, the risk of which increases the longer that such ETNs are held.

Risk of Long Term Holdings: The iPath^® Series B S&P 500^® VIX Short-Term Futures^TM ETNs are only suitable for a very short investment horizon. The relationship between the level of the VIX Index and the underlying futures on the VIX Index will begin to break down as the length of an investor’s holding period increases, even within the course of a single index business day. The relationship between the level of the underlying index and the value of such ETNs will also begin to break down as the length of an investor’s holding period increases due to the effect of accrued fees. The long term expected value of such ETNs is zero. If you hold such ETNs as a long term investment, it is likely that you will lose all or a substantial portion of your investment.

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 as specified in the pricing supplement, you must redeem at least the minimum number of ETNs specified in the pricing supplement 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. 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.

© 2022 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/20220314005483/en/

Ann Theilke

+1 212 526 1472

Ann.Thielke@barclays.com

Source: Barclays Bank PLC

FAQ

Why has Barclays suspended sales of iPath ETNs (OIL, VXX)?

Barclays suspended sales due to insufficient issuance capacity, not related to market conditions.

What are the implications of the suspension for iPath ETNs (OIL, VXX)?

The suspension may lead to price fluctuations and trading at premiums or discounts.

When does Barclays expect to reopen sales of the suspended ETNs (OIL, VXX)?

Barclays plans to resume sales when it can accommodate additional issuance capacity.

Are daily redemptions for iPath ETNs (OIL, VXX) affected by the suspension?

No, daily redemptions by holders will remain unaffected.

What risks should investors be aware of regarding the iPath ETNs (OIL, VXX)?

Investors should be aware of significant risks, including potential loss of principal and lack of principal protection.