Excerpts from the speech of the head of the CME

 CME chief Terry Duffy speaks to U.S. House Commitee on Financial Services in relation 1000 firing on a preschool educational institution.

For the last 4 of the day, the exchange conducted a detailed analysis of the activity 6 May. Preliminary analysis showed, that the CME functioned without disruption. Erroneous trades in the futures markets, that could break the spot dust,not found. Also, no one among the participants in futures transactions reported erroneously executed trades; no trade was canceled as a result of the trades 6 May.

CME analyzed transaction volumes and in particular focused on activity around 1 pm-2pm CT. Total volume in E-mini S&P 6 May amounted to 5.7 million contracts, about 1.6 million or 28% traded in the referenced time period. During this hour, the market was trading in a range 1143.75-1056 or 87.75 points- beginning of the period 1142 and at the end of the period 1113. More 250 firms and 9000 users were active during this period. During most of this hour,the spread was .25 pips and the market was trading normally , despite a significant drop and rebound. Approximately at 1:45:28, after a sharp fall on 12.75 pips in about 500ms per volume 1100 Contracts, the spread for a moment parted and amounted to 6.5 points. At this moment, the CME risk management system worked( globex stop price logic event). Resulting in, the market was instantly and automatically suspended for 5 seconds , to allow liquidity to 'return to the market'. Market, respectively, opened again and the bid was 1056.50. a offer 1056.75, after which the market rallies over 40 points to 1097 during 3 minutes.

The Market Regulatory Department reviewed a huge amount of activity during the mentioned period, which contained more 3 millions of system messages and in particular those users, who were active in this period. The department did not find any anomalies on the part of market participants.

  Forecast 10L profitability

This is once again confirmed by the fact,what I wrote about earlier. I.e, NYSE suspended trading for 1.5 minutes( LPR), while other exchanges do not have this rule, including electronic, which created violations in the spot market


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