Way away (now) from market trades not busted

Discussion in 'Index Futures' started by BoyPlunger, Aug 18, 2011.

  1. Is there some point or concrete method CME will use to decide which trades will be busted or not? I understand their basic feeling is that fictitious trades that are way away from the actual market will not stand. It looks like the SEC uses 20% away from the prevailing market as their bust threshold for stock trades.

    If I remember correctly, on May 6 2010, all of the futures trades were held, even though ES went from like 1130 to 1060 in a few minutes. Is that because the cash market went there also, even though it wasn't really an orderly market anywhere?

    obviously this is wishful thinking/moot point at this point. but just wondering where someone could put a bid in now and reasonably expect to get filled (and the trade ruled valid) at this point.
  2. kxvid


    I never heard of globex stock index futures trades being busted. Not so long ago some DXY index futures trades got busted, when it got very out of alignment with it's currency basket. Read the rulebook if you really want to know, but imo there are much bigger risks.
  3. Look at the current intra day limits for ES.. stick your buy order down there.

    However if the market really goes limit down and it wasnt just a flash crash spike down, you might find yourself trapped :eek: