Barclays launches new iPath Optimized Currency Carry exchange-traded notes

By Jennifer Chiou

New York, March 28 - Barclays Bank plc announced that Friday is the first day of trading for the iPath Optimized Currency Carry exchange-traded notes in an FWP filing with the Securities and Exchange Commission.

Barclays noted that this is the first ETN to provide investors with a cost effective way to capitalize on inefficiencies in the currency market and gain diversified currency exposure to help reduce portfolio risk.

The new ETN is linked to the performance of the Barclays Intelligent Carry index, which is designed to reflect the total return of an "intelligent carry strategy," which seeks to capture the returns that are potentially available from a strategy of investing in high-yielding currencies with the exposure financed by borrowings in low-yielding currencies.

Barclays Intelligent Carry index draws on the G10 currencies to carry out the strategy. The possible components are the U.S. dollar, euro, Japanese yen, Canadian dollar, Swiss franc, British pound sterling, Australian dollar, New Zealand dollar, Norwegian krone and the Swedish krone.

Initially the euro carries a weight of 28.31%, the Swedish krone negative 21.45%, the Norwegian krone 24.45%, the pound 41.89%, the New Zealand dollar 17.17%, the yen 23.25%, the Australian dollar 11.07%, the Canadian dollar negative 20.42%, the U.S. dollar negative 47.21% and the Swiss franc negative 57.05%.

The securities will be listed under "ICI" on the NYSE Arca Stock Exchange.

Barclays Capital Inc. is the agent.

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