Trading to be halted for 5 minutes if gold price moves $100 dollars
The CME Group has announced that it plans to impose trading collars for precious metals, meaning that a swing in the gold price of $100 dollars will prompt a five minute halt in trading.
The decision immediately prompted speculation as to why the new rule was being imposed now and whether it meant an unprecedented financial event was just around the corner.
Beginning on Monday December 22, gold trading will halt after an intraday move of $100 dollars from the previous close, while the same rule will be applied to silver after a move of $3 – a total of 8% and 17% respectively.
“Those are tremendous price changes and they certainly would seem to be out-of-reach on an intraday basis anyway,” writes the TF Metals Report. “So why the sudden rush by the CME to institute…
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