Market Data Advisory Notices
To Quote Vendors
From Market Data Operations
Subject Stock Index Price Limits to be Revised Effective for 4th Quarter 2008
Notice Date 2008-09-26
Notice Number Q2008-194
Effective Date 2008-09-30

Exchange price limit rules for domestic stock index futures• call for a quarterly re-assessment of price limits based on prevailing market prices.  Limits are calculated quarterly at the close of business on the day preceding the commencement of a new calendar quarter.  Thus, new limits shall become effective with the commencement of Electronic Trading Hours (ETH) on Tuesday, September 30 at 3:30 p.m. Central Time. The revised limits shall be applicable throughout the fourth calendar quarter of 2008. 

 

If limits were calculated using data collected through Monday, September 22, price limits for the fourth calendar quarter of 2008 would be as set forth below.  The official calculation will occur at the close of business on Monday, September 30. Details of the revised limits will appear on the Exchange’s Web site at www.cmegroup.com shortly thereafter, and a Special Executive Report will appear on the Exchange floor before the opening of Regular Trading Hours (RTH) on Wednesday, October 1.  Pro-forma limits and bands may be calculated as follows …  

 

Pro-Forma 4th Quarter 200 8 Stock Index Price Limits and Bands

 

Contracts

5% Limit (Overnight Hours)

10% Limit

20 % Limit

30 % Limit

2x No Bust

Band

4x No Bust

Band

S&P 500 Ò & E-mini ä

60.00

120.00

240.00

360.00

12.00

na

MidCap 400 ä & E-mini

37.00

75.00

150.00

225.00

8.00

na

DJIA Ò Futures

550

1,100

2,250

3,350

na

na

S&P/Citigroup Growth ä

30.00

60.00

120.00

180.00

8.00

na

S&P/Citigroup Value ä

30.00

60.00

120.00

180.00

8.00

na

NASDAQ-100 Ò & E-mini

85.00

170.00

340.00

510.00

24.00

na

E-mini NASDAQ Composite Ò

110.00

220.00

440.00

660.00

24.00

na

E-mini NASDAQ Biotechnology Ò

40.00

80.00

160.00

240.00

24.00

na

S&P 500 Financial

SPCTR ä

14.00

28.00

56.00

84.00

6.00

na

S&P 500 Technology (Telecom/IT) SPCTR ä

12.00

24.00

48.00

72.00

6.00

na

S&P Smallcap 600 ä & E-mini ä

19.00

38.00

76.00

114.00

8.00

Na

All TRAKRS SM

 

 

 

 

na

1.00

 

 

The Exchange’s circuit breakers are re-assessed quarterly rather than established at fixed levels insofar as fixed limits are not responsive to on-going market fluctuations.  CME rules are designed to coordinate with circuit breaker provisions as applied by the New York Stock Exchange (NYSE).

 

The NYSE enforces limits at 10%, 20% and 30% declines of the Dow Jones Industrial Average (DJIA), calculated at the beginning of each calendar quarter, using the average closing value of the DJIA for the prior month, rounded to the nearest 50 points.  Pro-forma limits may be calculated at 1,100, 2,250 and 3,350 (limits were at 1,200, 2,400 and 3,600 index points during the previous calendar quarter).  

 

Please consult the Rulebook for a complete description of the application of the circuit breaker provisions .Or, you may wish to direct any inquiries to Lucy Wang, Research Analyst, Product Research and Development at 312-648-5478.

 

Please contact mdo@cmegroup.com if you have any questions concerning this notice. Thank you