Pro Farmer Editors
The CME Group has issued a directive on positions held in the market by American International Group (AIG) which will allow "block trades" to reduce AIG positions in the market. Following is the text of that directive:
"CME Group took an emergency action today to facilitate the reduction of the positions of American International Group, Inc. (AIG) and its subsidiaries and to protect the orderly functioning of the market. The agreed-upon order permits the limited execution of block trades by AIG in certain CME and CBOT commodity futures products, including Soybeans, Soybean Oil, Corn, Wheat, Live Cattle and Lean Hogs, for the purpose of liquidating a portion of AIG's open positions. A block trade is a privately negotiated transaction between eligible contract participants that is executed outside of the public auction market. The order is effective through Wednesday, September 17, 2008."