Plenty of questions RE circuit breakers on......>

OIL: Plenty of questions RE circuit breakers on crude oil. 'Circuit breakers'

per se vary according to exchange, with ICE and CME all using slightly different

rules.

- On the ICE exchange, interval price limits (IPLs) are used: "IPLs have upper

and lower limits which are reset periodically, not after each trade. If a bid or

offer crosses the IPL, it will trigger a market hold. During the hold, the

market is prevented from further movement in that direction for a specific

period of time but trading is permitted in the opposite direction. Once the hold

comes to an end, a new IPL is calculated and the market can continue in either

direction.

- On the CME, for June'20 crude futures, dynamic circuit breakers are used.

These price limits are the maximum price range permitted in each trading

session. When markets hit the price limit, markets may temporarily halt until

price limits can be expanded, remain in a limit condition or stop trading for

the day, based on regulatory rules. This has already occurred for the June

contract at 1010BST, where trade was halted for 2 minutes before resuming.