Termination of iPath volatility ETN 'likely to be repeated' in latest version

Falling volatility is bad news for volatility products

The termination of Barclays' iPath leveraged volatility exchange-traded note (ETN) could be repeated with the second version of the product, with some market participants warning that further such terminations could lead to confusion over the nature of the products.

Falling volatility levels meant that earlier this month the iPath Long Enhanced S&P 500 Vix Mid-Term Futures ETN (which was issued by Barclays Bank and traded on the New York Stock Exchange) hit its automatic termination barrier of $