Barclays Bank PLC (“Barclays”) announced today the launch of the
first-ever no-fee exchange traded notes (ETNs), the iPath® Gold
ETNs (Ticker: GBUG) and the iPath® Silver ETNs (Ticker: SBUG). The
ETNs are also the first-ever no-fee exchange traded products (ETPs)
offering exposure to precious metals.
“Since Barclays brought the first ETNs to the US market in 2006,
we have been consistently focused on providing investors with
innovative and efficient products,” said Ian Merrill, Managing
Director and Head of US Equity Derivative Sales. “Today marks
another exciting day in the evolution of Barclays’ iPath platform
with the introduction of the first-ever ETNs that have no investor
fees, and the first-ever no-fee ETPs offering exposure to precious
metals.”
“We are always looking to create the most efficient products
possible for investors. By creating the first no-fee ETPs to track
the gold and silver market, we are building on our pioneering
reputation by delivering a product that we believe deserves
consideration by any asset allocator seeking exposure to precious
metals,” said Michael Hosana, Managing Director and Head of
Quantitative Index Strategies Trading, Americas.
The iPath Gold ETNs and iPath Silver ETNs offer investors
exposure to commodity futures by tracking the performance of two
Barclays indices: the iPath Gold ETNs track the Barclays Gold 3
Month Index Total Return (Ticker: BCC2GC3T), and the iPath Silver
ETNs track the Barclays Silver 3 Month Index Total Return (Ticker:
BCC2SI3T). Each of these indices is intended to reflect (1) the
performance of specified gold or silver futures contracts,
respectively, that will become the first liquid nearby futures
contracts three months in the future in accordance with a specified
schedule and (2) the return that corresponds to the weekly
announced interest rate for specified 3-month US Treasury
bills.
Barclays is a top three issuer of ETNs in the US, with over 20%
market share of notional value*, and products listed on NYSE Arca,
NASDAQ and CBOE.
The ETNs are expected to begin trading on the NYSE Arca exchange
on October 8, 2019. For further information, refer to the ETN
prospectuses that can be found on EDGAR, the SEC website, at:
www.sec.gov/edgar.html, as well as on the products websites at
www.iPathETN.com/GBUGprospectus or
www.iPathETN.com/SBUGprospectus.
Barclays Bank PLC is the issuer of iPath ETNs and Barclays
Capital Inc. is the issuer’s agent in the distribution. Please
contact Barclays if you have 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.
*Source: StructuredRetailProducts.com, as of August 30,
2019.
About Barclays
Barclays is a transatlantic consumer and wholesale 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 UK and the US.
With over 325 years of history and expertise in banking,
Barclays operates in over 40 countries and employs approximately
83,500 people. Barclays moves, lends, invests and protects money
for customers and clients worldwide. For further information about
Barclays, please visit our website www.barclays.com.
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.
Therefore, a decrease in the level of the Index could cause you to
lose up to your entire investment in the ETNs. The ETNs are riskier
than ordinary unsecured debt securities and have no principal
protection.
The ETNs May Generate a Profit for the Issuer and Its
Affiliates: Although the ETNs do not have an investor fee, the
ETNs may generate a profit for the issuer and its affiliates from a
return generated on the principal amount that the issuer receives
from the sale of the ETNs to the extent such return exceeds the
interest rate included in the total return feature of the
underlying index together with the costs of providing the ETNs and
their exposure to the underlying index. It is possible that the
issuer and its affiliates could receive substantial returns from
the ETNs while the market value of the ETNs declines.
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.
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. 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, governmental
policies and economic events.
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.
No Direct Exposure to Gold or Silver: THE ETNS OFFER
EXPOSURE TO FUTURES CONTRACTS AND NOT DIRECT EXPOSURE TO GOLD OR
SILVER OR THEIR SPOT PRICES. THESE FUTURES CONTRACTS WILL NOT TRACK
THE PERFORMANCE OF GOLD OR SILVER. In addition, the nature of the
futures market for gold and silver has historically resulted in a
cost to maintain a rolling position in the futures contracts
underlying each index. As a result, the level of the underlying
index, which tracks a rolling position in specified futures
contracts, may experience significant declines as a result of these
costs, known as roll costs, especially over a longer period. The
price of gold or silver will perform differently than the
underlying index and, in certain cases, may have positive
performance during periods where the underlying index is
experiencing negative performance. In turn, an investment in the
ETNs may experience a significant decline in value over time, the
risk of which increases the longer that the ETNs are held.
A Trading Market for the ETNs May Not Develop: Although
the ETNs are listed on a U.S. national securities exchange, 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: You must redeem at least 5,000
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 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
losses.
“Barclays Gold 3 Month Index Total Return” and “Barclays Silver
3 Month Index Total Return” are trademarks of Barclays Bank
PLC.
© 2019 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/20191007005140/en/
Press: Danielle Popper +1 212 526 5963
danielle.popper@barclays.com
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