Price Banding
This Issue in United States
Concept of Price Banding in Futures Trading
In this context of financial law, the following is a definition of Price Banding: A CME Group and ICE-instituted mechanism to ensure a fair and orderly market on an electronic trading platform. This mechanism subjects all incoming orders to price verification and rejects all orders with clearly erroneous prices. Price bands are monitored throughout the day and adjusted if necessary.
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