By Yoruk Bahceli LONDON, March 24 (Reuters) - Trading in two-year German government bond futures was interrupted on Monday for the first time since 2023, Deutsche Boerse's derivatives arm Eurex told
Eurex Halts German Bond Futures Trading Amid Volatility for First Time Since 2023
Volatility Interruptions Impact German Bond Futures Market
By Yoruk Bahceli
Details of the Trading Interruption
LONDON, March 24 (Reuters) - Trading in two-year German government bond futures was interrupted on Monday for the first time since 2023, Deutsche Boerse's derivatives arm Eurex told Reuters, as markets swung sharply after U.S. President Donald Trump postponed military strikes against Iranian power plants and energy infrastructure.
Timing and Triggers of the Interruptions
Two so-called volatility interruptions took place at 11:05:42 GMT and 11:17:04 GMT, the spokesperson said on Tuesday, as a selloff in government bonds reversed sharply after the news.
Mechanism of Volatility Interruptions
The volatility interruption, which is different than a trading halt, is a safeguarding tool and triggered automatically by Eurex's trading system, the spokesperson said, to ensure trading runs smoothly even in extreme market conditions.
Historical Context and Previous Interruptions
This was the first interruption on short-dated German bond futures since March 16, 2023, Eurex said.
Previous Incident Linked to ECB Rate Hike
That had taken place on a day the European Central Bank raised interest rates by 50 basis points against the backdrop of banking turmoil on both sides of the Atlantic that eventually led to the UBS's takeover of Credit Suisse.
(Reporting by Yoruk Bahceli; editing by Dhara Ranasinghe)
