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What is Velocity Logic?

A CME mechanism that can briefly pause matching when price moves too far within a very short time, as can happen at major news releases.

In context

At the release. The tape bursts: a huge number of trades in a very short time. Price can "jump" through several prices that have almost no resting liquidity, which looks like a small gap within the day. Stop orders are triggered and multi-price sweeps occur. CME has protective mechanisms such as Velocity Logic, which can pause matching for a few seconds if price moves too far in too short a time.

From Chapter 11: Putting It Together on Gold

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