Barclays suspends sales, issuances of two oil, VIX iPath ETNs

By Marisa Wong

Los Angeles, March 14 – Barclays Bank plc announced on Monday that it has suspended until further notice any further sales from inventory and any further issuances of two series of exchange-traded notes.

Barclays has suspended sales and issuances of its iPath Pure Beta Crude Oil ETNs due April 18, 2041 (NYSE Arca: OIL; Cusip: 06740P221) and iPath series B S&P 500 VIX Short-Term Futures ETNs due Jan. 23, 2048 (CBOE BZX: VXX; Cusip: 06747R477), effective as of the open of trading on March 14.

This suspension may cause fluctuations in the trading value of those ETNs. However, daily redemptions at the option of holders of the ETNs will not be affected by this suspension, according to the release.

Barclays said this suspension is being imposed because it 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 said.

The London-based bank added that it expects to reopen sales and issuances of the ETNs as soon as it can accommodate additional capacity for future issuances.

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