CME Group Inc, the world’s largest futuresmarket operator, on Wednesday took emergency action to adjust trading limits for feeder cattle futures after prices plunged for five days in a row.
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A CME Group committee “determined that an emergency exists and that emergency action is warranted” after futures sank by their daily trading limits for five consecutive days, the Chicago-based company said in a notice.
The slide “may have a severe, adverse effect upon the functioning of the exchange” and jeopardize the integrity of trading in feeder and live cattle futures, the notice said.
The daily price limit for feeder cattle futures will climb to $4.50 per hundredweight from $3.00 per hundredweight effective on Thursday.