Early Termination of 3SRR ETP Due to Rolls-Royce Volatility
Posted:3SRR: What Happened?
As a result of the sharp rise in the share price of Rolls-Royce Holdings Plc on 9th and 10th November 2020, the Value per ETP Security for the GraniteShares 3x Short Rolls-Royce Daily ETP (3SRR) fell below 200% of the Minimum Redemption Amount on two consecutive Scheduled Valuation Days. In application of Condition 8 (d) (vii)[1] such an occurrence has resulted in an Early Redemption Event, notice of which has been given to Securityholders by GraniteShares Financial Plc (the “Issuer”) through an RNS announcement.
The amount per ETP Security of GBp 0.196122, i.e. less than 1/5 of 1p, is expected to be paid to Securityholders and was determined after market close on 11 November 2020. This expected amount payable per security was notified through an RNS announcement. Proceeds are expected to be transferred to the clearing system on 17 November (Early Redemption Date) after which they will be distributed.
Which ETP will be closing?
| Security Name | Exchange | ISIN | LSE ticker code | SEDOL Code |
|---|---|---|---|---|
| GraniteShares 3x Short Rolls-Royce Daily ETP Securities | London Stock Exchange | XS2066850855 | 3SRR | BHR47K2 |
What is the timetable of closing down 3SRR?
Wednesday, 11 November 2020
The product was suspended from trading on London Stock Exchange following the official announcement notifying investors of the Early Redemption Event.
Based on the Solactive index closing level on 11 November, the Value per ETP Security is GBp 0.196122, which is expected to be the reference level for the investor’s pay-out. This level was communicated through the following RNS announcement. For more details on how the Value per ETP was calculated please see Important Information
Tuesday, 17 November 2020
On this date (or shortly thereafter) payment is expected to be made to Euroclear Bank. Please note it may take a few days for the payment to reach your broker’s or custodian’s accounts, and from there your broker may take more time processing the payment to your account.
GraniteShares will not be charging any commissions or fees related to the disbursement of the payment. However, there may be fees that are charged by your broker, custodian or settlement systems. To the extent that you hold your securities through a broker, custodian or other intermediary, please contact that intermediary for information on how they will pass on the payments. Typically, you should expect to receive the payment in much the same way you receive a dividend. It may take longer for the payment to find its way to your account if you hold 3SRR through a broker or a nominee account of another kind. Your broker, bank or financial adviser will be able to provide further information regarding how this process will work with respect to your account.
[1] See the Base Prospectus for the Collateralised ETP Securities Programme available at graniteshares.com/ETPS
