Barclays Bank PLC (“Barclays”) announced an investor guidance
notification today regarding the iPath® Dow Jones-UBS Natural
Gas Subindex Total ReturnSM Exchange Traded Notes (the
“ETNs”). The ETNs currently trade on the NYSE Arca stock exchange under
the ticker symbol “GAZ”.
Barclays previously announced the temporary suspension of further
issuances of the ETNs on August 21, 2009. As described in that press
release and also in the pricing supplement relating to the ETNs, the
limitations on issuance and sale implemented could from time to time
cause an imbalance of supply and demand in the secondary market for the
ETNs, which may cause the ETNs to trade at a premium or discount in
relation to their indicative value.
Recently, there has been a persistent and material premium in the
trading price of the ETNs on the exchange in relation to their intraday
indicative value. From January 31, 2012 to May 17, 2012, the indicative
value decreased by approximately 19% from $3.02 to $2.46 per ETN,
while the closing price of the ETNs on the exchange increased by
approximately 18% from $3.13 to $3.69 per ETN. The closing price of the
ETNs on the exchange as of May 17, 2012 reflected a 50% premium to
current indicative value.
Due to likely continued fluctuations in this premium, Barclays believes
that the ETNs are currently not suitable for most investors and will not
track the price of the underlying natural gas futures index in a
Investors considering any purchase of the ETNs should be aware of the
fact that the intra-day market prices of the ETNs on the exchange could
be significantly higher than the intraday indicative value of the ETNs
as calculated with reference to the level of the underlying index, minus
an investor fee.
The secondary market for the ETNs has been volatile and unpredictable,
and investors should not assume that the ETNs will continue to trade at
a premium in relation to their intraday indicative value.
Daily redemptions at the option of the holders of the ETNs continue to
stay open. The pricing supplement relating to the ETNs can be found on
EDGAR, the SEC website at: www.sec.gov,
as well as on the product website at www.iPathETN.com.
Barclays Bank PLC is the issuer of iPath® ETNs and Barclays
Capital Inc. is the issuer’s agent in the distribution. Barclays Bank
PLC and Barclays Capital Inc. have retained the services of BlackRock
Investments, LLC, a member of FINRA, to promote the ETNs and provide
certain services relating to the ETNs.
Barclays moves, lends, invests and protects money for customers and
clients worldwide. With over 300 years of history and expertise in
banking, we operate in over 50 countries and employ over 140,000 people.
We provide large corporate, government and institutional clients with a
full spectrum of solutions to their strategic advisory, financing and
risk management needs. Our clients also benefit from access to the
breadth of expertise across Barclays.