The rallies in oil and other energy products have been so furious that they’ve set off rarely used trading limits, or circuit breakers, designed to keep commodity markets from spiraling out of control. As a hybrid market with both a trading floor and an online platform, the energy-focused New York Mercantile Exchange’s circuit breakers are particularly tricky.
In electronic trading, heating oil recently hit its daily limit, trading up 25 cents. That caused a brief halt to trading in all Nymex energy products and, when trading resumed, all limits were doubled. Crude oil’s limit went from $10 to $20 following the halt....MORE
Friday, June 6, 2008
The Energy Markets’ Circuit Breakers
From MarketBeat:
