CME Expands Daily Price Limit On Nikkei 225 Index

The Chicago Mercantile Exchange (CME) has expanded the daily price limit for its Nikkei 225 index contracts to 1,500 index points effective with the start of trading tomorrow, March 1. The expanded daily price limit is triggered by a rule of the exchange which provides that the daily price limit is to be set monthly based on the settlement price of the lead month futures contract on the last business day of the prior month. When the lead month contract in the Nikkei 225 settles between 20,005 and 30,000 index points, the daily price limit is 1,500 index points. When the lead month settles at 20,000 points or below, the daily price limit is 1,000 index points. Because the settlement price of March Nikkei 225 futures was 20,055 today, the daily price limit is expanded to 1,500 index points. The limit is subject to change on a monthly basis.