Barclays Bank PLC Announces Reverse Split of the iPath® Series B S&P 500® VIX Short-Term Futures™ ETNs
Barclays Bank PLC has announced a 1 for 4 reverse split of its iPath® Series B S&P 500® VIX Short-Term Futures™ ETNs, effective on March 7, 2023. The ETNs currently trade under the ticker symbol VXX on the CBOE BZX Exchange. The record date for this reverse split is set for March 6, 2023, with holders receiving a new reverse-split adjusted ETN for every four held, plus cash payments for any partial holdings. The ETNs pose significant risks, including lack of principal protection and exposure to fluctuations in the underlying index. For details on risks and processes, refer to the relevant prospectus.
- Reverse split may enhance the marketability of ETNs by reducing the number of outstanding units.
- ETNs have no principal protection, making them riskier than ordinary unsecured debt securities.
- Market value may fluctuate unpredictably based on various economic factors, potentially leading to significant losses.
Barclays has the right (but no obligation) to initiate such a reverse split of the ETNs at its discretion on any business day, as described in the pricing supplement relating to the ETNs. On
The record date for the reverse split of the ETNs will be effective after the close of business,
Investors who, as of the record date, hold a number of ETNs that is not divisible by four will receive one reverse-split adjusted ETN for every four ETNs held on the record date and a cash payment for any odd number of ETNs remaining (the “partials”). The cash amount due on any partials will be determined on
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.
For more information regarding the reverse split process, including how the reverse-split adjusted value is determined, see the pricing supplement relating to the ETNs under the heading “Specific Terms of the ETNs—Split or Reverse Split.” The prospectus for the ETNs to which this communication relates can be found at: https://ipathetn.barclays/ipath/details/341408/download-content/7775988.
Barclays is the issuer of iPath®
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 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. Barclays offers investment banking products and services in the US through
Selected Risk Considerations
An investment in the ETNs 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
The Performance of the Underlying Indices are Unpredictable: An investment in the ETNs is subject to risks associated with fluctuations, particularly a decline, in the performance of the underlying index. Because the performance of such index is linked to futures contracts on the CBOE® Volatility Index (the “VIX Index”), the performance of the underlying index will depend on many factors including, the level of the S&P 500®, the prices of options on the S&P 500®, and the level of the VIX Index which may change unpredictably, affecting the value of futures contracts on the VIX Index and, consequently, the level of the underlying index. Additional factors that may contribute to fluctuations in the level of such index include prevailing market prices and forward volatility levels of the
Your ETNs Are Not Linked to the VIX Index: The value of your ETNs will be linked to the value of the underlying index, and your ability to benefit from any rise or fall in the level of the VIX Index is limited. The index underlying your ETNs is based upon holding a rolling long position in futures on the VIX Index. These futures will not necessarily track the performance of the VIX Index. Your ETNs may not benefit from increases in the level of the VIX Index because such increases will not necessarily cause the level of VIX Index futures to rise. Accordingly, a hypothetical investment that was linked directly to the VIX Index could generate a higher return than your 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
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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 25,000 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 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.
The S&P 500 VIX Futures Indices are products of
© 2023
NOT FDIC INSURED · NO BANK GUARANTEE · MAY LOSE VALUE |
Barclays is a transatlantic consumer, corporate and investment 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
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matthew.scully@barclays.com
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FAQ
What is the purpose of the 1 for 4 reverse split by Barclays?
When will the reverse split for Barclays’ ETNs take effect?
What happens to investors with an odd number of ETNs on the record date?
What are the risks associated with investing in Barclays' ETNs?