Deutsche Asset & Wealth Management has said that it will suspend any further issuances of the PowerShares DB 3x Italian Treasury Bond Futures Exchange Traded Note (ETNs) and the PowerShares DB Italian Treasury Bond Futures Exchange Traded Note, effective immediately.
The ETNs are issued by Deutsche Bank AG, London Branch. The ETN holders’ option to require Deutsche Bank AG to repurchase the ETNs will not be affected by this suspension. However, Deutsche Bank AG will not be issuing new ETNs to the market.
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As disclosed in the pricing supplement relating to the ETNs, the market value of ETNs may be influenced by, among other things, the levels of supply and demand for the ETNs.
It is possible that the suspension, as described above, may materially influence the market value and the liquidity of the ETNs.
Deutsche AWM said it believes that the limitations on issuance and sale implemented may 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 intraday indicative value.
"We reserve the right to resume issuing additional ETNs at any time, which might result in the reduction or elimination of any premium or discount in the trading price of the ETNs relative to their intraday indicative value."
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