ICE Futures US will implement new daily price limit rules for the cotton No 2 futures contract, effective July 11, that will expand the contract's limit to 6 cents per pound under specific conditions, it said on Thursday. While no daily trading limit is applied to an expiring futures contract.
The daily trading limit will be expanded to 4 cents per lb if two of the first five contracts close at the 3 cents limit, ICE said in an exchange notice. If two of these contracts settle at the 4-cent limit, the daily price limit will expand to 5 cents per lb on the following business day.
If none of the contracts settle at the 5-cent limit, however, the limit will revert to a 4-cent price limit the next business day, ICE said. If either of the two futures contracts with the highest open interest settle at 84 cents per lb or higher, the daily price limit will expand by one cent to a maximum of six cents per lb.
Comments
Comments are closed.