Barclays Bank PLC ("Barclays") today announced a temporary reduction of the minimum early redemption size of certain series of ETNs as specified in the tables below (together, the "ETNs"). Currently holders of the ETNs are required to redeem a minimum number of ETNs, as specified below, at one time in order to exercise the right to redeem the ETNs directly with the issuer. Barclays will temporarily reduce the required minimum redemption size for each series of ETNs to the number of ETNs specified below for the relevant series, so that holders may redeem the ETNs of the relevant series on any redemption date with the reduced minimum size.
For the six ETNs in Table-1 below, these changes will be effective after the close of trading on December 22, 2017 and will be effective for the next three years ending on and including December 22, 2020, unless extended by Barclays at its sole discretion. Any such future modification will be applied on a consistent basis for all holders of the ETNs at the time such modification becomes effective.
Table-1
| ETN Name | ETN Ticker | Underlying Index Name |
Underlying |
Current |
Reduced |
|||||
| iPath® EUR/USD Exchange Rate ETN | ERO | EUR/USD Exchange Rate | EURUSD WMCO | 50,000 | 2,000 | |||||
| iPath® GBP/USD Exchange Rate ETN | GBB | GBP/USD Exchange Rate | GBPUSD WMCO | 50,000 | 2,000 | |||||
| iPath® JPY/USD Exchange Rate ETN | JYN | JPY/USD Exchange Rate | JPYUSD WMCO | 50,000 | 2,000 | |||||
| iPath® GEMS Index ETN | JEM | Barclays Global Emerging Markets Strategy (GEMS) Index | BXIIGEM1 | 20,000 | 2,000 | |||||
| iPath® GEMS Asia-8 ETN | AYT | Barclays GEMS Asia-8 Index | BXIIGMA8 | 20,000 | 2,000 | |||||
| iPath® Asian and Gulf Currency Revaluation ETN | PGD | Barclays GEMS Pegged Currency Index | BXIIGEMP | 20,000 | 2,000 |
For the four ETNs in Table-2 below, these changes will be effective after the close of trading on December 22, 2017 and will be effective until the Maturity Date of the ETNs.
Table-2
| ETN Name | ETN Ticker | Underlying Index Name |
Underlying |
Current |
Reduced |
|||||
| iPath® Long Enhanced MSCI Emerging Markets Index ETN | EMLB | MSCI Emerging Markets Net TR Index | NDUEEGF | 25,000 | Zero | |||||
| iPath® Long Enhanced MSCI EAFE® Index ETN | MFLA | MSCI EAFE Net TR Index | NDDUEAFE | 25,000 | Zero | |||||
| iPath® Long Extended Russell 1000® TR Index ETN | ROLA | Russell 1000 TR Index | RU10INTR | 25,000 | Zero | |||||
| iPath® Long Extended Russell 2000® TR Index ETN | RTLA | Russell 2000 TR Index | RU20INTR | 25,000 | Zero |
All of the ETNs trade on the NYSE Arca stock exchange.
The obligation of Barclays to accept any early redemption of ETNs, including with the reduced minimum redemption size as specified herein, 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.
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.
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:
http://www.ipathetn.com/EMLBprospectus
http://www.ipathetn.com/MFLAprospectus
http://www.ipathetn.com/ROLAprospectus
http://www.ipathetn.com/RTLAprospectus
http://www.ipathetn.com/SFLAprospectus
http://www.ipathetn.com/EROprospectus
http://www.ipathetn.com/GBBprospectus
http://www.ipathetn.com/JYNprospectus
http://www.ipathetn.com/JEMprospectus
http://www.ipathetn.com/AYTprospectus
http://www.ipathetn.com/PGDprospectus
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/advisor/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 change 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 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.
Issuer Redemption: If specified in the applicable prospectus, Barclays Bank PLC will have the right to redeem or "call" a series of 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.
Automatic Redemption: If specified in the applicable prospectus, Barclays Bank PLC will automatically redeem a series of ETNs (in whole only, but not in part) at the specified automatic redemption value if, on any valuation date prior to or on the final valuation date, the intraday indicative note value of the ETNs becomes less than or equal to the applicable level specified in the prospectus.
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, 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.
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 may 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.
Risks Specific to Leveraged Equity ETN products
Leverage Risk: For ETNs that offer a leveraged exposure to the underlying index, changes in the level of the underlying index will have a greater impact on the payout on the ETNs than on a payout on securities that are not so leveraged. In particular, any decrease in the level of the underlying index will result in a significantly greater decrease in the payment at maturity or upon redemption, and an investor will suffer losses on an investment in the ETNs substantially greater than an investor would if the ETNs did not contain a leverage component.
Your Return May Be Affected By Factors Affecting International Security Markets and Emerging Markets: The international equities underlying certain indices sponsored by MSCI, Inc. may have less liquidity and could be more volatile than the securities traded in the U.S. or other longer-established securities markets. Additional special risks associated with international securities may include less rigorous regulation of securities markets, different accounting and disclosure standards, government interference, higher inflation, and social, economic, and political uncertainties.
Risks Specific to "Single Currency" ETN products
Single Currency Exchange Risk: An investment in ETNs linked to the performance of a foreign currency exchange rate is subject to risks associated with fluctuations, particularly a decline, in the price of the applicable single foreign currency relative to the U.S. dollar. Factors that may have the effect of causing a decline in the price of a foreign currency include national debt levels and trade deficits, domestic and foreign inflation rates, domestic and foreign interest rates, and global or regional economic, financial, political, regulatory, geographical or judicial events. Currency exchange rates may be extremely volatile, and exposure to a single currency can lead to significant losses.
Risks Specific to "Multi-Currency" ETN products
Exchange Rate Risk: Because the performance of the underlying index is linked to the exchange rates between the index constituent currencies and the US dollar, the level of the underlying index may be affected by unpredictable changes in currency prices, including as a result of government action. Because some or all of the index constituent currencies do not float freely and are currently either managed or pegged by their respective governments, and the exchange rates of managed and pegged currencies tend to fluctuate significantly less than those of free-floating currencies, there is limited potential for the increase in value of the underlying index.
Emerging Market 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. Investments in emerging market currencies carries the risk of loss from unfavorable fluctuations in currency exchange rates due to economic, social, political, financial and military conditions in the emerging markets. The ETNs may be subject to more volatility than investments outside of emerging markets.
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® Index is a product of S&P Dow Jones Indices LLC ("SPDJI"), and has been licensed for use by Barclays Bank PLC. S&P® and S&P 500® 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 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 500® Index to track general market performance.
"Russell 1000® Index", "Russell 2000® Index" and "Russell 3000® Index" are trademarks of Russell Investments and have been licensed for use by Barclays Bank PLC. The ETNs are not sponsored, endorsed, sold, or promoted by Russell Investments. Russell Investments makes no 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 Russell Indices to track general stock market performance or a segment of the same.
MSCI and the MSCI Index names are servicemarks of MSCI or its affiliates and have been licensed for use for certain purposes by Barclays Bank PLC. The ETNs are not sponsored or endorsed by MSCI, any affiliate of MSDCI or any other party involved in, or related to, making or compiling any MSCI Index. The ETNs are not sold or promoted by MSCI, any affiliate of MSCI or any other party involved in, or related to, making or compiling any MSCI Index. The MSCI Indices are the exclusive property of MSCI. Neither MSCI, any of its affiliates, or any other party involved in, or related to, making or compiling any MSCI Index makes 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 the financial securities generally or in the ETNs particularly or the ability of any MSCI Index to track corresponding stock market performance.
"Barclays Global Emerging Markets Strategy (GEMS) Asia 8 IndexTM", "Barclays Global Emerging Markets Strategy (GEMS) Pegged Currency IndexTM" and "Barclays Global Emerging Markets Strategy (GEMS) IndexTM" are trademarks of Barclays Bank PLC.
© 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.
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