S&P 500 Futures Limits for 3/09/20

[Overnight]

I think the idea was to avoid the situation where you have a 15 minute halt and then open up for 7 minutes or 1 minute or some other short period of time before the regular close and end up with a very disorderly market. At some point you have to decide how short is too short between the reopen and the regular close, they picked that probably somewhat at random.

Ahh, that makes sense.

 

[schizo]

Yes, but it also seems to read that if markets drops 7% or 10% or whatever AFTER 2:25 PM CT, those breakers would not trip at all. Only the 20% one...?

Here's what it says on CME:


What happens when the underlying S&P 500 Index hits a circuit breaker level?


20% decline

A 20% decline (Level 3 circuit breaker) in the S&P 500 Index will terminate trading for the remainder of the trading day in both the cash equity market AND all U.S.-based equity index futures and options, including E-mini S&P 500 and S&P 500 futures and options. Trading will resume in coordination with the cash equity market.

Also note that from 2:25 p.m. to 3:00 p.m. CT, only the 20% market-wide circuit breaker level will be applicable.

 

[Ironplates]

A C.Y.A. call. Then I saw a call for prices in the $20's. Of course, it made it to the $20's. 2 months ago crude peaked on that Iran rumor at around $65. All the way down to $27.50.

because 20 is the next area of support. Making a good place for shorts to cover and prevent the stops under 20 from getting hit. Let's see what happens.

 

[CannonTrading_Ilan]

THIRD round of equity margin increases recently:


YM, $8250 --> $9075


NQ, $10,780 --> $11,880


RTY, $4730 --> $5170


and

CL, $4510 --> $5115