“The selling also caused disruptions in the plumbing behind several ETFs. Citigroup stopped accepting orders to redeem underlying assets from ETF issuers, after one trading desk reached its allocated risk limits,” the FT reported.
Meanwhile, ETF provider State Street said it would cease accepting cash redemption orders for muni bond products from dealers, although in-kind redemptions were still taking place, according to the story.
Full disclosure: Tom Lydon’s clients own EEM.
Story updated.