Barclays launches 15 commodity ETNs, to delist and call existing ETNs

By Marisa Wong

Morgantown, W.Va., Jan. 11 – Barclays Bank plc announced the launch of 15 exchange-traded notes, each designed to provide investors with exposure to the performance of a subindex of the Bloomberg Commodity Index Total Return, according to a press release.

Barclays also announced on Thursday that it plans to delist from the NYSE Arca and suspend sales from inventory and further issuances of some existing commodity ETNs, effective after the close of trading on April 12.

The new ETNs are expected to begin trading on the NYSE Arca on Jan. 18 under the following ticker symbols:

• “JJAB” for the iPath Series B Bloomberg Agriculture Subindex Total Return ETN linked to the Bloomberg Agriculture Subindex Total Return;

• “JJUB” for the iPath Series B Bloomberg Aluminum Subindex Total Return ETN linked to the Bloomberg Aluminum Subindex Total Return;

• “BJO” for the iPath Series B Bloomberg Coffee Subindex Total Return ETN linked to the Bloomberg Coffee Subindex Total Return;

• “JJCB” for the iPath Series B Bloomberg Copper Subindex Total Return ETN linked to the Bloomberg Copper Subindex Total Return;

• “BALB” for the iPath Series B Bloomberg Cotton Subindex Total Return ETN linked to the Bloomberg Cotton Subindex Total Return;

• “JJEB” for the iPath Series B Bloomberg Energy Subindex Total Return ETN linked to the Bloomberg Energy Subindex Total Return;

• “JJGB” for the iPath Series B Bloomberg Grains Subindex Total Return ETN linked to the Bloomberg Grains Subindex Total Return;

• “JJMB” for the iPath Series B Bloomberg Industrial Metals Subindex Total Return ETN linked to the Bloomberg Industrial Metals Subindex Total Return;

• “COWB” for the iPath Series B Bloomberg Livestock Subindex Total Return ETN linked to the Bloomberg Livestock Subindex Total Return;

• “BJJN” for the iPath Series B Bloomberg Nickel Subindex Total Return ETN linked to the Bloomberg Nickel Subindex Total Return;

• “PGMB” for the iPath Series B Bloomberg Platinum Subindex Total Return ETN linked to the Bloomberg Platinum Subindex Total Return;

• “JJPB” for the iPath Series B Bloomberg Precious Metals Subindex Total Return ETN linked to the Bloomberg Precious Metals Subindex Total Return;

• “JJSB” for the iPath Series B Bloomberg Softs Subindex Total Return ETN linked to the Bloomberg Softs Subindex Total Return;

• “SGGB” for the iPath Series B Bloomberg Sugar Subindex Total Return ETN linked to the Bloomberg Sugar Subindex Total Return; and

• “JJTB” for the iPath Series B Bloomberg Tin Subindex Total Return ETN linked to the Bloomberg Tin Subindex Total Return.

The new ETNs feature an investor fee calculated and subtracted from the closing indicative value of the ETNs on a daily basis at a rate of 0.45% per year.

The new ETNs will also be redeemable at the issuer’s option on any business day on or after their inception until maturity.

The subindexes underlying the new ETNs reflect the returns that are potentially available through an unleveraged investment in the respective commodity futures contracts comprising the relevant subindex plus the rate of interest that could be earned on cash collateral invested in specified Treasury Bills, according to the release.

The 16 existing commodity ETNs that Barclays plans to delist currently trade on NYSE Arca under the ticker symbols listed below:

• “JJA” for the iPath Series B Bloomberg Agriculture Subindex Total Return ETN linked to the Bloomberg Agriculture Subindex Total Return;

• “JJU” for the iPath Series B Bloomberg Aluminum Subindex Total Return ETN linked to the Bloomberg Aluminum Subindex Total Return;

• “JO” for the iPath Series B Bloomberg Coffee Subindex Total Return ETN linked to the Bloomberg Coffee Subindex Total Return;

• “JJC” for the iPath Series B Bloomberg Copper Subindex Total Return ETN linked to the Bloomberg Copper Subindex Total Return;

• “BAL” for the iPath Series B Bloomberg Cotton Subindex Total Return ETN linked to the Bloomberg Cotton Subindex Total Return;

• “JJE” for the iPath Series B Bloomberg Energy Subindex Total Return ETN linked to the Bloomberg Energy Subindex Total Return;

• “JJG” for the iPath Series B Bloomberg Grains Subindex Total Return ETN linked to the Bloomberg Grains Subindex Total Return;

• “JJM” for the iPath Series B Bloomberg Industrial Metals Subindex Total Return ETN linked to the Bloomberg Industrial Metals Subindex Total Return;

• “COW” for the iPath Series B Bloomberg Livestock Subindex Total Return ETN linked to the Bloomberg Livestock Subindex Total Return;

• “JJN” for the iPath Series B Bloomberg Nickel Subindex Total Return ETN linked to the Bloomberg Nickel Subindex Total Return;

• “PGM” for the iPath Series B Bloomberg Platinum Subindex Total Return ETN linked to the Bloomberg Platinum Subindex Total Return;

• “JJP” for the iPath Series B Bloomberg Precious Metals Subindex Total Return ETN linked to the Bloomberg Precious Metals Subindex Total Return;

• “JJS” for the iPath Series B Bloomberg Softs Subindex Total Return ETN linked to the Bloomberg Softs Subindex Total Return;

• “SGG” for the iPath Series B Bloomberg Sugar Subindex Total Return ETN linked to the Bloomberg Sugar Subindex Total Return;

• “JJT” for the iPath Series B Bloomberg Tin Subindex Total Return ETN linked to the Bloomberg Tin Subindex Total Return; and

• “OIL” for the iPath S&P GSCI Crude Oil Total Return Index ETN linked to the S&P GSCI Crude Oil Total Return index.

Some of the existing ETNs listed above may already be subject to suspension, the issuer noted.

Following the delisting, the existing ETNs will remain outstanding, but they will no longer be listed for trading on any national securities exchange. The ETNs may then trade, if at all, on an over-the-counter basis; the secondary market for the existing ETNs may experience a significant drop in liquidity, and holders of the existing ETNs may not be able to trade or sell their existing ETNs easily, the issuer noted.

The existing ETN holders’ option to require Barclays to repurchase the existing ETNs will not be affected by this delisting. Currently, holders are required to put a minimum number of existing ETNs of the same series at one time. However, Barclays will temporarily waive the required minimum redemption size for each series of existing ETNs. The waiver will be effective after the close of trading on Jan. 17 for the next three years until and including Jan. 19, 2021.

More ETNs to be delisted

In a separate press release on Thursday, Barclays said it plans to delist from NYSE Arca and suspend sales from inventory and further issuances of another 16 series of ETNs, effective after the close of trading on April 12.

Barclays also announced it plans to redeem in full 18 other series of ETNs on April 12.

Barclays plans to delist the following ETNs:

• iPath MSCI India Index ETN (Symbol: INP) linked to the MSCI India Total Return index;

• iPath Asian and Gulf Currency Revaluation ETN (Symbol: PGD) linked to the Barclays GEMS Pegged Currency index;

• iPath CBOE S&P 500 BuyWrite Index ETN (Symbol: BWV) linked to the CBOE S&P 500 BuyWrite index;

• iPath EUR/USD Exchange Rate ETN (Symbol: ERO) linked to the euro/dollar exchange rate;

• iPath GBP/USD Exchange Rate ETN (Symbol: GBB) linked to the sterling/dollar exchange rate;

• iPath GEMS Asia 8 ETN (Symbol: AYT) linked to the Barclays GEMS Asia 8 index;

• iPath GEMS Index ETN (Symbol: JEM) linked to the Barclays Global Emerging Markets Strategy (GEMS) index;

• iPath Global Carbon ETN (Symbol: GRN) linked to the Barclays Global Carbon II TR USD index;

• iPath Inverse S&P 500 VIX Short-Term Futures ETN (Symbol: XXV) linked to the S&P 500 VIX Short-Term Futures Index Excess Return;

• iPath JPY/USD Exchange Rate ETN (Symbol: JYN) linked to the yen/dollar exchange rate;

• iPath Long Enhanced MSCI EAFE Index ETN (Symbol: MFLA) linked to the MSCI EAFE Net Total Return index;

• iPath Long Enhanced MSCI EM Index ETN (Symbol: EMLB) linked to the MSCI Emerging Markets Net Total Return index;

• iPath Long Extended Russell 1000 Total Return index ETN (Symbol: ROLA) linked to the Russell 1000 Total Return index;

• iPath Long Extended Russell 2000 Total Return index ETN (Symbol: RTLA) linked to the Russell 2000 Total Return index;

• iPath Long Extended S&P 500 Total Return index ETN (Symbol: SFLA) linked to the S&P 500 Total Return index; and

• iPath Optimized Currency Carry ETN (Symbol: ICI) linked to the Barclays Optimized Currency Carry index.

Following the delisting, the ETNs will remain outstanding, but they will no longer be listed for trading on any national securities exchange. The ETNs may then trade, if at all, on an over-the-counter basis; the secondary market for the ETNs may experience a significant drop in liquidity, and holders of the ETNs may not be able to trade or sell their ETNs easily, the issuer noted.

Barclays plans to redeem the following ETNs:

• iPath Pure Beta Agriculture ETN (Symbol: DIRT) linked to the Barclays Commodity Index Agriculture Pure Beta Total Return:

• iPath Pure Beta Aluminum ETN (Symbol: FOIL) linked to the Barclays Aluminum Pure Beta Total Return index;

• iPath Pure Beta Cocoa ETN (Symbol: CHOC) linked to the Barclays Cocoa Pure Beta Total Return index;

• iPath Pure Beta Coffee ETN (Symbol: CAFE) linked to the Barclays Coffee Pure Beta Total Return index;

• iPath Pure Beta Copper ETN (Symbol: CUPM) linked to the Barclays Copper Pure Beta Total Return index;

• iPath Pure Beta Cotton ETN (Symbol: CTNN) linked to the Barclays Cotton Pure Beta Total Return index;

• iPath Pure Beta Energy ETN (Symbol: ONG) linked to the Barclays Commodity Index Energy Pure Beta Total Return;

• iPath Pure Beta Grains ETN (Symbol: WEET) linked to the Barclays Commodity Index Grains & Oilseeds Pure Beta Total Return;

• iPath Pure Beta Industrial Metals ETN (Symbol: HEVY) linked to the Barclays Commodity Index Industrial Metals Pure Beta Total Return;

• iPath Pure Beta Lead ETN (Symbol: LEDD) linked to the Barclays Lead Pure Beta Total Return index;

• iPath Pure Beta Livestock ETN (Symbol: LSTK) linked to the Barclays Commodity Index Livestock Pure Beta Total Return;

• iPath Pure Beta Nickel ETN (Symbol: NINI) linked to the Barclays Nickel Pure Beta Total Return index;

• iPath Pure Beta Precious Metals ETN (Symbol: BLNG) linked to the Barclays Commodity Index Precious Metals Pure Beta Total Return;

• iPath Pure Beta Softs ETN (Symbol: GRWN) linked to the Barclays Commodity Index Softs Pure Beta Total Return;

• iPath Pure Beta Sugar ETN (Symbol: SGAR) linked to the Barclays Sugar Pure Beta Total Return index;

• iPath Pure Beta S&P GSCI-Weighted ETN (Symbol: SBV) linked to the Barclays Pure Beta Series-2 Total Return index;

• iPath Seasonal Natural Gas ETN (Symbol: DCNG) linked to the Barclays Natural Gas Seasonal Total Return index; and

• iPath Inverse S&P 500 VIX Short-Term Futures ETN (II) (Symbol: IVOP) linked to the S&P 500 VIX Short-Term Futures Index Excess Return.

On the redemption date, holders of each series of these 18 ETNs will receive a cash payment per ETN in an amount equal to the closing indicative note value or closing indicative value of that series of ETNs on April 5, which is the fifth business day prior to the redemption date.

The put option under these 34 series of ETNs will not be affected by the planned delisting or redemption. Currently, holders are required to put a minimum number of ETNs of the same series at one time. However, Barclays will temporarily waive the required minimum redemption size for each series that is expected to be delisted or redeemed. The waiver will be effective after the close of trading on Jan. 17 until the earlier of the maturity date of the applicable series of ETNs and Jan. 19, 2021.

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