Barclays Bank PLC, as index sponsor of the Barclays Global Carbon Index Total Return – the underlying index for the iPath Global Carbon ETN – has announced that the index will be retired effective 27 October, 2017.
The index will be replaced by the Barclays Global Carbon II TR USD Index, effective after the close of 27 October, 2017. Pursuant to the terms of the ETNs, Barclays Bank PLC as calculation agent on the ETNs has approved the Successor Index as a successor index for the ETNs following the discontinuation of publication of the Original Index.
Friday, 27 October, 2017 will be last valuation date on which the closing indicative value of the ETNs will be calculated by reference to the Original Index. Starting from 30 October, 2017, the ETNs will be linked to the performance of the Successor Index and the closing indicative value and redemption value of the ETNs will be calculated by reference to the Successor Index.
Both the Original Index and the Successor Index have the objective of providing exposure to the global price of carbon and track the return of futures contracts on a carbon emissions credit that trade on the Intercontinental Exchange (ICE).
The Successor Index determines the weightings of the Index Components on an annual basis without the use of the Index Committee that was used by the Original Index to approve the rules, composition and methodology of the Original Index. The method for determining the composition and weighting of the Successor Index is intended to codify the process undertaken by the index sponsor to determine the composition and weighting of the Original Index.
The futures contracts eligible for inclusion as Index Components in the Successor Index include futures contracts on carbon emissions credits from only two mechanisms: EUAs and CERs (each traded on ICE). Although the Index Components of the Original Index historically included only futures contracts relating to these two mechanisms, the Original Index provided that the index sponsor, in consultation with the Index Committee, could identify additional mechanisms to which the Original Index could provide exposure.
The closing value of the Successor Index will be calculated and published on each trading day by Bloomberg LP or a successor via the facilities of the Consolidated Tape Association under the ticker symbol “BXIIGC2T”. The closing value of the Original Index has been previously published under the ticker symbol “BXIIGCUT”.