CME Takes Action to Curb Price Volatility in Cattle Futures
- Chairman says he will be `very agressive' to implement changes
- Cattle industry complained after volatility spiked in late `15
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CME Group Inc., responding to criticism over price volatility in the cattle futures market, announced measures to help curb price swings while denying that high-frequency traders are to blame.
Cattle futures will be added to an existing CME system that caps how many order updates traders can send in relation to the number of trades they actually execute. The change starts Monday, Chairman Terry Duffy said at a conference organized by the National Cattlemen’s Beef Association in San Diego. The Chicago-based bourse, the world’s largest futures market, is also examining five-to-six-second trading delays that would act as circuit-breakers.