Important disclosures United States (US)
Barclays Capital Inc. is a US registered broker/dealer affiliate of Barclays Bank PLC and a member of SIPC, FINRA and NFA. Barclays Capital Inc. operates out of 745 Seventh Avenue, New York, NY 10019.
Where required pursuant to applicable US laws, rules and/or regulations, Barclays Capital Inc. accepts responsibility for the distribution of this document in the United States to U.S. Persons.
Where a communication is being directed at persons who are professionals, it is directed at institutional investors in the U.S. as defined by FINRA Rule 2210(a)(4).
Prior to buying or selling an option, please read the Characteristics & Risks of Standardized Options available at: http://www.optionsclearing.com/about/publications/character-risks.jsp.
Options, structured derivative products and futures are not suitable for all investors as the inherent risk may expose investors to rapid and substantial losses. Trading in these instruments is risky and may be appropriate only for sophisticated investors. Various theoretical explanations of the risks associated with these instruments have been published.
Risks associated with specific Option Strategies include:
Call or put purchasing: If you buy options, the maximum loss is the premium
Uncovered call writing: If you sell call options, the risk is unlimited
Uncovered Put Writing: If you sell put options, the risk is the entire notional below the strike
Call or put vertical spread purchasing (same expiration month for both options): Risk is limited to the premium paid when the position is established
Call or put vertical spread writing (same expiration month for both options): Risk is limited to the difference between the strike prices less the amount received in premiums
Call or put calendar spread purchasing (different expiration months & short must expire prior to the long): Risk is limited to the premium paid when the position is established
Risk Reversals (buy 1 put, sell 1 call at a higher strike) – if you are long the put and short the higher priced call, risk is unlimited, if you are short the put and long the higher priced call, the risk is the entire notional below the strike
1x2 call spread (buy 1 call, sell 2 calls at higher strike) – if you are long the lower strike and short the two higher strikes, risk is unlimited, if you are short the lower strike and long the two higher strikes, risk is limited
Butterflies/Condors (sell 2 calls, buy one call at a higher strike, buy one call at a lower strike) – risk is limited for both buyers and sellers
Straddles/Strangles (buy a call and a put) – if you are long the call and put, risk is limited, if you are short the call and put, risk is unlimited
Call Ladders (buy an ITM call, sell an ATM call, sell an OTM call) - If you are long the ITM call and short the ATM and OTM calls , risk is unlimited, if you are short the ITM call and long the ATM and OTM calls, risk is limited
Put Ladders (buy an ITM put, sell an ATM put, sell an OTM put) – If you are long the ITM put and short the ATM and OTM puts, the risk is equal to the entire notional below the lower strike plus any premium paid, if you are short the ITM put and long the ATM and OTM puts, the risk is limited
Additional strategies can be constructed using combinations of the strategies described above. A combination is at least as risky as its most risky, uncovered component. For example, the risk of selling a combination containing an uncovered call option is unlimited and may result in losses significantly greater than the premium received. Before buying or selling a combination, the investor must make certain to understand each component of the combination and which, if any, components are uncovered.
The actual profit or loss from any trade will depend on the price at which the trades are executed. Because of the importance of tax considerations to many options transactions, the investor considering options should consult with his/her tax advisor as to how taxes affect the outcome of contemplated options transactions.
SEC Rule 605
In accordance with SEC Rule 605, Barclays Capital Inc. compiles and publishes a monthly report regarding the execution quality provided by its trading desk of orders in equities in which we are a market maker. This report is available at http://vrs.vista-one-solutions.com/ within one month after the end of the month addressed in the report. These statistics represent only a portion of our executed order flow, and as such, investors should take into account a variety of factors in evaluating execution quality.
SEC Rule 606
In accordance with SEC Rule 606, Barclays Capital Inc. compiles and publishes a quarterly report regarding its routing of non-directed customer orders in national market system securities and listed options. This report is available at http://vrs.vista-one-solutions.com/ within one month after the end of the quarter addressed in the report.
Customers may request a written copy of the report be furnished to them free of charge. In addition, customers may request Barclays Capital Inc. to furnish a report identifying the venue to which their orders in national market system securities and listed options were routed for execution in the six months prior to the request, whether the orders were directed orders or non-directed orders, and the time of the transactions, if any, resulting from such orders. Please email requests for SEC Rule 606 order routing information to email@example.com.
US Annual Disclosure Letter
Please access the US Annual Disclosure Letter for important disclosures regarding trading with Barclays.
US CFTC Risk Disclosure Statement
Please access the US CFTC Risk Disclosure Statement for important disclosures regarding trading with Barclays Capital Inc.
EMIR Clearing Member Disclosures for Barclays Capital Inc
Please access the European Market Infrastructure Regulation (EMIR) clearing member disclosures relating to Barclays Capital Inc, published in accordance with BCI's requirements under EMIR Articles 38(1), 39(5) and 39(7), in the Agency Derivative Services section of the Prime Services site: EMIR Clearing Member Disclosures for Barclays Capital Inc.