The owner of the Chicago Board of Trade and the Chicago Mercantile Exchange “took emergency action … to allow bigger-than-normal swings in its interest-rate futures” on election night, reported Reuters. The CME Group said market volatility might increase as votes are counted in the U.S. presidential election.
“This emergency action is being taken as a precautionary measure and is intended to ensure fair and orderly trading,” said a CME Group notice to customers.
Normally, there are tighter limits on price movements at CME Group exchanges during overnight trading when trading volume typically is lower. The wider daytime price limits will be in effect beginning today at 6 p.m. ET and carrying through Wednesday at 8:20 a.m. ET. Price limits will revert to their usual range on Wednesday evening.