Home News US stocks

Speculation on election results prompt NASDAQ trading halt

Bloomberg
Bloomberg11/4/2020 01:51 PM GMT+08  • 1 min read
Speculation on election results prompt NASDAQ trading halt
Futures contracts on the Nasdaq 100 rose jumped 3.5% within an hour
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

Nasdaq 100 stock futures rose fast enough to trigger an exchange volatility halt that pauses especially rapid swings at 3.5%, as traders assessed election results.

Contracts on the Nasdaq 100 rose jumped 3.5% within an hour, setting off a trading pause for two minutes. If gains extend to 7% from a Chicago Mercantile Exchange reference price calculated at the end of the trading day Tuesday, moves will be entirely capped with hard upside limits. Nasdaq futures are up 3.9% in the complete overnight session.

Stock futures triggered trading limits multiple times earlier this year in the midst of the Covid-19 crash. Then, though, the limits limits kicked in at 5%, and there was no threshold at the 3.5% mark. CME Group changed the limit restrictions last month.

“The rules were recently changed to better allow for price discovery, based on the findings of an industry-wide task force,” CME spokesperson Chris Grams said in an email.

According to a CME Group fact sheet, these “dynamic circuit breakers” are in place to “help reset the market if it moves too far, too fast.”

×
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.