CME says it intervened to prevent 'even harder' falls on equity futures
Statement from the Chicago mercantile Exchnage on the ES drop upon the reopen of Globex
- CME experienced multiple Velocity Logic events from the open in Equity futures today
- several 10 second pauses
- where limit orders were accepted
- but market/IOC orders were rejected
- causing multiple algo slices to get rejected
And, the kicker ….
- The pauses allow participants to enter the market preventing even harder moves
If you are following the ES there were large lot sizes going through, drove price down hard indeed. According t0 the CME statement (they are the exchange for the ES) it could have been worse.
As I posted earlier (link above), this fits with the sentiment for lower stocks. There was a big drop on Tuesday, then cash trade was suspended on Wednesday for the impromptu holiday commemorating former President George H. W. Bush.