Circuit Breakers Dashboard In Development
Circuit Breakers
| Level | % Change | Price Change | Trigger Price | Trading Action |
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What are Circuit Breakers?
Circuit breakers are temporary trading halts designed to limit extreme price movements and provide a cooling-off period during significant market volatility. They were implemented after the market crash of 1987 to prevent panic selling and buying.
CME Circuit Breaker Rules
The CME Group has established price limits and circuit breakers for equity index futures that align with those used by cash equity markets:
- Level 1 (7%): Trading halts for 15 minutes if triggered before 3:25 PM ET
- Level 2 (13%): Trading halts for 15 minutes if triggered before 3:25 PM ET
- Level 3 (20%): Trading halts for the remainder of the trading day
If reached at or after 3:25 PM ET, Level 1 and Level 2 circuit breakers do not halt trading. Circuit breaker levels are calculated based on the previous day's closing price of the futures contract.
Price Limits vs. Circuit Breakers
Price limits set the maximum price range for a trading session, while circuit breakers temporarily halt trading. The E-mini S&P 500 futures have both mechanisms:
- Price Limits: Define the maximum price range for overnight trading (5% up or down from previous close)
- Circuit Breakers: Applicable during regular trading hours (7%, 13%, and 20% levels)
Futures vs. ETFs
This dashboard monitors futures contracts, not ETFs, because:
- Futures have circuit breakers: ES, NQ, YM, and RTY futures have specific circuit breaker rules
- ETFs don't have circuit breakers: SPY, QQQ, DIA, and IWM ETFs trade continuously without circuit breakers
- Different trading hours: Futures trade nearly 24/5 while ETFs trade only during market hours
- Leverage and margin: Futures use leverage while ETFs are cash instruments
The circuit breaker levels shown here are based on the actual futures contract prices from CME Group.