Barclays to swap out maturing iPath VIX short-, mid-term futures ETNs

By Susanna Moon

Chicago, Jan. 4 – Barclays Bank plc said it will launch in early 2018 the iPath series B S&P 500 VIX Short-Term Futures exchange-traded notes and the iPath series B S&P 500 VIX Mid-Term Futures ETNs.

The new ETNs are being launched before the maturity of the iPath S&P 500 VIX Short-Term Futures ETNs and the iPath S&P 500 VIX Mid-Term Futures ETNs on Jan. 30, 2019, and both the new ETNs and the maturing ETNs will trade in parallel until the final redemption date of the maturing ETNs, according to a company announcement.

The new ETNs have an investor fee of 0.89% per year and will be callable on any trading day.

They will be issued with a closing indicative value on its initial valuation date that is equal to that of the corresponding maturing ETNs on that date.

Barclays said it also will waive the minimum early redemption size of 25,000 ETNs on the maturing ETNs for any redemption order that is paired with a simultaneous purchase of an equivalent amount of the corresponding new ETNs from Barclays.

The bank will charge no additional purchase or redemption fees for the paired orders until the old ETNs mature.

Holders may sell their maturing ETNs and/or purchase new ETNs on the secondary market at the prevailing trading price on the exchange.

They also may put maturing ETNs to Barclays with no minimum early redemption size and simultaneously purchase an equivalent amount of the corresponding new ETNs from Barclays, with each transaction having the same valuation date and settlement date.

For more information, contact Barclays at etndesk@barclays.com or 212 528-7790.

Holders also may put maturing ETNs to Barclays under the early redemption option without simultaneously purchasing new ETNs from Barclays or purchase new ETNs from Barclays without simultaneously redeeming maturing ETNs, in each case for the applicable cash value.

The iPath series B S&P 500 VIX Short-Term Futures ETNs are based on the performance of the S&P 500 VIX Short-Term Futures index, which measures the return from a daily rolling long position in the front and second month futures contracts on the CBOE Volatility index traded on the Chicago Board Options Exchange. The iPath series B S&P 500 VIX Mid-Term Futures ETNs are based on the performance of the S&P 500 VIX Mid-Term Futures index, which measures the return from a daily rolling long position in the fourth, fifth, sixth and seventh month futures contracts on the VIX index traded on the CBOE.

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