CME Mulls Price Fluctuation Limits for Au & Ag Futures

House · May 2, 2014

NEW YORK, April 29 (Reuters) - U.S. futures exchange CME Group Inc is considering the introduction of daily limits on price moves in gold and silver futures in a bid to rein in wild volatility that has spooked investors in recent years, a CME official said on Tuesday.

CME at present has price fluctuation limits for futures contracts in some energy, agricultural commodities and financial products, but none for its precious and base metals products.

The possible move reflects growing concern at the largest U.S. exchange of futures and options about big bouts of buying or selling that have caused huge fluctuations in prices without any apparent fundamental reason.

"We don't have price limits in gold and silver. That's something that we are looking into," Miguel Vias, CME Group's director of metal products, said in a panel discussion at an industry event, in response to a question about how the exchange protects investors from excessive volatility.

In the first four months of the year, COMEX gold futures volume dropped 10 percent from a year ago, while turnover of silver contracts gained about 7.5 percent.

The gold and silver futures are the most-traded commodity contracts after crude oil and other energy products.
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Reuters

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CME Mulls Price Fluctuation Limits for Au & Ag Futures

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CME Mulls Price Fluctuation Limits for Au & Ag Futures

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