AIG-Backed ETCs Trading on European Markets Again

[Updated: All ETCs resumed trading on Monday afternoon.]

All of the AIG-backed exchange-traded commodity (ETC) products offered in Europe by ETF Securities have reopened for trading, according to the company.

AIG is the credit counterparty for 113 of the company's 131 ETCs. Those AIG-backed products were formally halted by the London Stock Exchange on September 17, as concerns mounted about the future of AIG. But with the U.S. government stepping in to backstop AIG, those concerns have disappeared, and trading in the products is returning to normal. (One could even argue that, with the U.S. government clearly saying that AIG is "too big to fail," the credit strength of ETF Securities is strong indeed.)

Sixty-six of the ETCs resumed trading on Friday, September 19, and all 113 ETCs were trading by Monday afternoon.

ETF Securities also offers 18 ETCs that are either backed by Shell Oil or supported by physical holdings of precious metals bullion; these shares were not impacted by the trading halt, and were not in any way impacted by AIG's troubles.

Comments

[PeteK:]

That's great news. AIG represents America and the US government did the right thing by helping AIG. Not to help will be a shame. Foreign countries will look-down on Americans. Hope people understanding before they say nasty things about their own country.

2008 Sep 23 02:21 AM

[keo:]

Well, on Euronext, market makers were sill not giving off quotes on Monday 22snd. Trading is open, ok, but without liquididty this is meaningless. The problems are still NOT over.

2008 Sep 23 02:25 AM