The purpose of price fluctuation limits is to provide the market a momentary pause during times of increased volatility. If a price fluctuation limit is reached on the lead month of a product, all related instruments will be halted. If a price fluctuation limit is reached on the non-lead moth, only the specific instruments will be halted.
Each hour, a reference price is calculated using the procedures outlined in the product’s specific rule and a 10% up and down price fluctuation limit will be applied to the reference price. The market will enter a halt state for two minutes if a price fluctuation limit is reached. During this time, orders can be submitted, canceled, and amended but no matching will occur. If a price fluctuation limit is reached, the new reference prices will be the last price fluctuation limit for the remainder of that hour.