Barclays announced that it has indefinitely suspended issuance of new units of its oil and volatility ETFs. The oil product has the ticker OIL and the volatility product is VXX, which is a cousin to the infamous XIV ETN.
A statement from Barclays says there won't be any further sales from inventory or issuance of new units. It also said it expects to revive the products later:
This suspension is being imposed because Barclays does not currently have sufficient issuance capacity to support further sales from inventory and any further issuances of the ETNs. These actions are not the result of the crisis in Ukraine or any issue with the market dynamics in the underlying index components. Barclays expects to reopen sales and issuances of the ETNs as soon as it can accommodate additional capacity for future issuances.
I have absolutely no use for these products and there's undoubtedly a better way for everyone to trade these things than with these products. If you're watching these in the days ahead, they will continue to trade but watch out for a disconnection from NAV.
