ICE Futures Exchange Notice: Amendments to Exchange Error Policy (with Lofchie Comment)

The ICE Futures Exchange has announced that it will implement amendments to the Error Policy to provide for No Cancellation (“NCR”) and Reasonability Limit (“RL”) levels for the financial gas, power and emissions futures and options contracts. This will become effective Monday, October 15, 2012.

Lofchie Comment: These policies have become extremely important in the securities market where an electronic trade has been mistakenly executed by a HAL 9000 gone haywire. They were the subject of some discussion in connection with the blow-up at Knight, where the regulators determined to break only those trades that were outside of established exchange-set error parameters.

View notice in full here (links externally to ICE website).