Circuit Breaker
The CB trigger level is to be set every day at the start of a clearing period (i.e: the start of a night session at 17:00) and is based on the settlement price of the previous clearing period (or the settlement price of the preceding contract month, in case of a new contract month). After the start of a session, including the opening auction, if there are corresponding orders at a price falling outside the CB trigger level (i.e: if the CB is “triggered”), said orders will not be immediately executed and the trading session for all contract months in that instrument will be halted. The CB trigger level will be expanded and the order acceptance period will start. Trading will then resume simultaneously in all contract months through an opening auction. If the CB is triggered within the last 5 minutes of the day session or night session (i.e. after 15:25 or 22:55), the session will end at the closing time.
| Opening Auction Continuous Trading |
1) Right after orders could possibly be matched outside the CB trigger level, the trading session for all contract months in that instrument are halted (see notes below). 2) Order acceptance period starts and the CB trigger level is automatically expanded. 3) After a certain period, trading will resume (opening auction for all contract months simultaneously). 4) Continuous trading will follow. |
| Right before closing of day session | If the closing time comes before trading could resume, as described under regular process No. 3 above, the session will close. |
| Right before closing of night session | The expanded CB trigger level, as described under regular process No. 2 above, will still be effective in the day session. If the closing time comes before trading could resume, as described under regular process No. 3 above, the session will close. |
| Second CB trigger within the same clearing period | The regular process will apply (i.e: the CB trigger level will be automatically expanded for the second time). |
Note 1. Examples of contract months (options series) affected by a CB trigger:
- CB trigger in one contract month of the Gold Standard contract: CB will be triggered in the other five contract months. CB will neither be triggered in the Gold Mini contract, nor in the Gold Options (call/put).
- CB trigger in one contract month of the Gold Mini contract: CB will be triggered in the other five contract months. CB will neither be triggered in the Gold Standard contract, nor in the Gold Options (call/put).
- CB trigger in one series of the Gold Call Options. CB will be triggered in all the other Gold Call Options series. CB will neither be triggered in the Gold Put Options, nor in the Gold futures (standard and mini).
Note 2. If a CB is triggered in a contract month during the opening auction, the sessions in the other contract months will also be halted. However, in some contract months, the sessions can be halted after execution at the opening auction takes place. For the contract month where the CB originated, there will be no opening auction, the session will be halted and orders will start to be accepted. The session halt period (order acceptance period) is 5 minutes. The CB trigger level per market will be regularly updated (www.tocom.or.jp).
