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AIG-Backed ETCs Resume Trading in Europe

Source: http://www.indexuniverse.com/sections/newsinfocus/10-news-in-focus/4545-etf-securities-reopen.html?Itemid=3&utm_source=straightstocks.com&utm_medium=sidebar&utm_campaign=rss
Posted on Monday, September 22nd, 2008 | In Exchange Traded Funds
Contributed by: IndexUniverse Staff (http://indexuniverse.com) -

ETF Securities returns to normal.

[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.

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About IndexUniverse Staff (http://indexuniverse.com)
IndexUniverse encompasses the world of indexing and beyond. Our website and related subsites cover product and market developments related to index funds, exchange-traded funds (ETFs), index derivatives (futures / options / swaps), and the sophisticated investment strategies which use these financial tools. Our goal is to provide the industry's best news, columns, research, and features about the dynamic field of index-based investing and trading. Industry professionals, individual investors, business/finance students and academic researchers will find various features targeting their interests and needs. We also provide valuable tools and data to assess markets and investment products, and specialized discussion boards for our registered members to exchange cutting-edge ideas and market views. We aim to be educational, thought-provoking, and most importantly, rigorously independent in our perspective.

The development of IndexUniverse was a global effort, originally led by Steven Schoenfeld and Jim Wiandt, supported by John Spence and a diverse team in the U.S., Europe and Latin America, and enhanced by editorial contributors from around the world. The site is now managed solely by Jim Wiandt and the global Index Publications LLC team. The site was originally started by Steven as a data and information complement to his book, Active Index Investing, published by Wiley Finance in July 2004. As he recognized the need and potential for such a resource, in August 2003, Steven partnered with Jim, who as editor of The Journal of Indexes similarly recognized the industry's need for timely, useful and independent information on products and markets.

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