Investors and traders holding shares of the BNP Paribas S&P Dynamic Roll Global Commodities ETF (BNPC) have until April 12 to dispose of their shares under free-market conditions. BNP Paribas Quantitative Strategies has voluntarily chosen to withdraw the NYSE Arca listing for the fund. No liquidation plans were announced, so it is imperative for all shareholders to sell prior to the delisting.
I predicted a short life for this ETF when it launched just 10 months ago, stating that it "brings nothing new to the market (except an unfamiliar name), and will likely struggle to attract investor attention." BNP Paribas has only this one ETF, so its demise also marks the firm's exit from the U.S. ETF market. The fund currently has about $20 million in assets.
The press release does not give any indication that BNPC plans to liquidate its holdings. In fact, it implies that no liquidation is forthcoming, as "The Fund has not arranged for listing or registration on another national securities exchange or for quotation of its security in a quotation medium." A delisting without liquidation will result in shareholders finding it extremely difficult to locate a buyer or to get a reasonable price if they find one. No liquidation will also place BNP Paribas in the ETF Hall of Shame, along with Credit Suisse for taking four years to liquidate three ETNs and JPMorgan for delisting BSR in 2009 without liquidation.
Disclosure: No positions in any of the securities mentioned. No positions in any of the companies or ETF sponsors mentioned. No income, revenue, or other compensation (either directly or indirectly) received from, or on behalf of, any of the companies or ETF sponsors mentioned.