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Mistery surrounds the overnight futures sell-off, CME taking precautions

  • Regular
  • US Market
  • 6 days ago
  • 15

Thursday began with a unexplainable plunge in equity futures which prompted the CME group to stop trading several times.

As futures markets opened the eMini S&P500 futures was down 1.8%

The CME Group has to step in with several halts in trading to avoid a total plunge in the abyss for futures. 

A spokesman for the CME group said, “our equity index futures and options markets paused intermittently following this evening's open due to volatility, which triggered more than 40 Velocity Logic events in the first six minutes of trading. All markets operated as designed throughout."

The CME's Velocity Logic is designed to detect market movements of a set numbers of ticks up or down in a predetermined amount of time and halt trading if necessary.

On opening of trade the S&P500 dropped 1.7% and the Dow shed more than 450 points, bringing its total two-day loss to more than 1,000 points.

 

 

 

Source: Smart Trend Team