ICE adds interval price limit circuit breaker

Intercontinental Exchange (ICE) Group's ICE Futures US exchange has today launched interval price limit (IPL) functionality on futures contracts.

Intercontinental Exchange (ICE) Group's ICE Futures US exchange has today launched interval price limit (IPL) functionality on futures contracts.

The IPL system will act as a temporary circuit breaker on ICE's electronic platform.

ICE said the move to use IPL will help reduce the likelihood and effect of short-term price spikes or unusual market movements.

The new features comes with three customisable parameters, such as limiting the price movement of contracts over a period of time, limiting the number of points a contract month can move up or down and limits to hold periods triggered by prices outside the IPL range.

All parameters can be set for each individual futures product and can be changed over time based on market conditions.

IPL is designed to operate throughout each trading day, though ICE said it is only expected to be triggered in cases of extreme price moves over a short period of time.

Upcoming futures to be listed on the exchange will feature IPL from launch.

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