Stop Logic Functionality

This Issue in United States

Concept of Stop Logic Functionality in Futures Trading

In this context of financial law, the following is a definition of Stop Logic Functionality: A provision applicable to futures traded on the CME’s Globex electronic trading system designed to prevent excessive price movements caused by cascading stop orders. Stop Logic Functionality introduces a momentary pause in matching (Reserved State) when triggered stops would cause the market to trade outside predefined values. The momentary pause provides an opportunity for additional bids or offers to be posted.