NEW YORK Feb 27 ICE Futures U.S. on
Thursday broadened its rules designed to limit volatility for
the second time in a week, as its coffee and raw sugar markets
face unusual volatility, with arabica marking its biggest
monthly surge in 20 years.
The exchange said it will reject limit orders placed outside
of the maximum trading range designed to prevent "fat finger
errors" by errant traders starting March 10. The amendment to
the rule, called a reasonability limit, means that any limit
order to sell below the limit or to buy above it, at the time
the order is entered, will be rejected.
Currently, certain conditions allow some of these orders to
This latest revision comes just a week after the exchange
raised the reasonability limit levels for its arabica coffee
futures contracts as the market became increasingly volatile,
with speculative buying pouring into the market on concern about
drought damage in top grower Brazil.