Barclays temporarily suspends sales of ETN+ Short D Leveraged ETNs

By Angela McDaniels

Tacoma, Wash., Feb. 9 - Barclays Bank plc has temporarily suspended any further sales of its Barclays ETN+ Short D Leveraged exchange-traded notes due Nov. 20, 2014 linked to the S&P 500 Total Return index, according to an FWP filing with the Securities and Exchange Commission.

The index has risen more than 21% since the end of 2009. Based on the performance of the index, Barclays believes the intraday indicative value of the notes may fall to $10, or 20% of par, in which case the notes will be automatically redeemed.

The indicative note value on any day equals the Treasury bill amount on that day minus three times the short index amount on that day. The T-bill amount on any day is $200 plus accrued interest minus accrued fees. The short index amount on any day is $150 plus the index return on that day.

The notes closed at $16.31 (NYSE Arca: BXDD) on Tuesday.

If the notes are called, holders will receive the intraday indicative value of the notes as determined by the calculation agent.

When the notes (Cusip: 06740H633) launched in November 2009, the issuer said it planned to sell up to $125 million principal amount of the notes.

Barclays noted that the suspension may cause fluctuations in the trading value of the notes. The put option for the notes and Barclays' lending activities with respect to the notes are not affected.

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