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.”
