| NEW YORK, June 7
NEW YORK, June 7 Unusual, volatile trading in
markets just ahead and after U.S. jobs data was released on
Friday caused brief halts in stock and bond futures.
It was not clear what sparked the volatility but this type of
movement has happened in the past when traders tried to
speculate on the outcome of data ahead of its release.
The popular 10-year Treasury note futures contract
traded on the CME Group's Chicago Board of Trade saw its
trading halted about one second before the release of the May
payrolls data. The S&P 500 e-Mini futures, the most
actively traded futures contract, was halted on CME just a
second after the jobs report was out as activity spiked.
Separately, gold futures saw a sharp increase in volume just
before the jobs report was released. Gold futures dropped
sharply, from showed a move from $1,409 per troy ounce to as low
as $1,398.20, according to Thomson Reuters data. Nearly 5,000
contracts were traded in a one minute period at 8:30 a.m. EDT
(1230 GMT), the busiest minute of trading on Friday.
The S&P e-mini futures spiked as high as 1,632.75 to a low
of 1,619.25. After the sudden moves, e-Mini futures were halted
at 8:30:01 a.m. to 8:30:06 a.m. T-bond futures were also halted
at 8:29:59 to 8:30:04 a.m.
Michael Shore, a CME Group spokesman, said there was a "stop
logic event" just after 8:30 a.m. EDT.
Stop Logic, CME's mechanism to introduce a momentary pause
in trading, aims to prevent large price movements from cascading
stop-price orders, an order to sell or buy a security when it
reaches a particular price. It also allows participants to
provide additional liquidity and the market to regain