Trading in US stock futures had to be halted after violent moves
The world's largest futures exchange, CME Group, had to repeatedly halt trading in US stock futures for brief periods this morning because of violent price moves, in an unusual intervention that has stunned traders.
US stock futures reopened this morning in Asia after an unscheduled closure to mark the funeral of former President George H.W. Bush on Wednesday. Tuesday's trade saw Wall Street selling off heavily, with the key indices down around 3% and the Dow down 800 points.
When futures re-opened in the Asian trading day on Thursday, stock futures plunged again, falling up to 1.9%. (They soon recovered and a short time ago were down just over 1%.)
It was during this opening in trade that CME Group intervened to manage the volatile trading activity, putting a stop to algorithms closing orders.
The price action caused several CME "Velocity Logic" events, which are triggers to halt futures trading when price movements move too far, or too fast in a given direction.
CME announced this morning that it intervened to prevent steeper falls in US equity futures.
https://www.msn.com/en-us/money/markets/trading-in-us-stock-futures-had-to-be-halted-after-violent-moves/ar-BBQyE1y?li=BBnbfcN
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