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Barclays launches first locally listed ETNs on Toronto Stock Exchange

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Barclays Bank has launched three iPath Exchange Traded Notes (ETNs) on the Toronto Stock Exchange, the first ETNs to be listed locally on an exchange in Canada.

The ETNs were created to provide investors with access to USD-denominated indices in a CAD-hedged and locally issued format. The following are the new iPath ETNs and their exchange tickers:

iPath® S&P 500 VIX Short-Term FuturesTM CAD Hedged ETN (VIX)
iPath® S&P 500 Dynamic VIX CAD Hedged ETN (DVX)
iPath® Pure Beta Crude Oil CAD Hedged ETN (PBO)

The volatility linked ETNs, VIX and DVX, are linked to the S&P 500 VIX Short-Term Futures TM Index and the S&P 500 Dynamic VIX Futures Total Return Index, respectively. VIX offers exposure to shorter-term futures on the CBOE Volatility Index and DVX offers exposure to a dynamic strategy that aims to reduce the effects of contango during normal or low volatility regimes. These products can be used to manage or hedge risk and express a directional view on volatility.

The commodity linked ETN, PBO, is linked to the Barclays WTI Crude Oil Pure Beta Index. This ETN is designed to provide investors with exposure to an index that aims to provide a more representative exposure to the underlying WTI crude oil commodity than traditional front month futures based indices.

“We are pleased to offer investors in Canada access to products that offer exposure to USD underlying indices, while mitigating currency risk,” says Johnny Wu, Head of Investor Solutions, Americas, at Barclays. “The launch of today’s volatility and commodity-linked ETNs demonstrates our ongoing commitment to providing investors, around the globe, with access to difficult-to reach markets through ETNs.”

Barclays is a global leader in ETNs with USD8 billion in assets under management. The firm has ETNs listed in the US, UK, Germany, Italy, Singapore and Japan.

iPath ETNs are designed to provide investors with convenient access to the returns of market benchmarks, less investor fees and other applicable costs. Subject to the requirements described in the applicable prospectus, the ETNs can be sold in the secondary market during trading hours at market prices, and may typically be redeemed in 25,000 units for VIX and DVX, and 50,000 units for PBO on a daily basis directly to Barclays Capital Inc., an affiliate of the issuer.
 

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