Bank of Montreal launch of four new series of exchange traded notes on NYSE Arca
We advised Bank of Montreal on the launch of U.S. Big Banks and U.S. Big Oil leveraged and inverse leveraged ETNs
Davis Polk advised Bank of Montreal (BMO) in connection with the launch of four new series of SEC-registered exchange traded notes (ETNs). The U.S. Big Banks and U.S. Big Oil leveraged and inverse leveraged ETNs are each intended to offer sophisticated investors three times leveraged long or short, as applicable, participation in the daily performance of the relevant index, before taking into account fees, charges and the decay effect caused by the daily resetting of the leverage. Each series of ETNs is listed on the NYSE Arca, Inc.
The MicroSectors U.S. Big Banks 3× Leveraged ETNs and the MicroSectors U.S. Big Banks -3× Inverse Leveraged ETNs are linked to the gross total return version of the Solactive MicroSectors U.S. Big Banks Index, an equally weighted equity index that tracks the performance of 10 of the largest U.S. stocks included in the banking and investment services sectors.
The MicroSectors U.S. Big Oil 3× Leveraged ETNs and the MicroSectors U.S. Big Oil -3× Inverse Leveraged ETNs are linked to the gross total return version of the Solactive MicroSectors U.S. Big Oil Index, an equally weighted equity index that tracks the performance of 10 of the largest U.S. stocks included in the upstream energy, integrated oil and gas exploration and production, and downstream and midstream energy sectors.
BMO Financial Group is the eighth largest bank in North America by assets, with total assets of $1.468 trillion as of January 31, 2025. Serving customers for 200 years and counting, BMO is a diverse team of highly engaged employees providing a broad range of personal and commercial banking, wealth management, global markets and investment banking products and services to 13 million customers across Canada and the United States, and in select markets globally.
The Davis Polk capital markets team included partner Christopher S. Schell, counsel Michael J. Russo and associates Jacquiley Wong, Christian Mueller and Maria Vlachou. The tax team included partner Aliza Slansky, counsel David S. Fisher and associate Alec Oveis. Partner Pritesh P. Shah provided intellectual property advice. Members of the Davis Polk team are based in the New York and Northern California offices.