Are volatility interruptions only triggered in simple futures instruments?

Volatility interruptions are mechanisms designed to temporarily halt trading in a financial instrument when its price experiences significant fluctuations in a short period of time. This is done to maintain orderly markets and prevent excessive price volatility, which can lead to panic and disorderly trading conditions.

The concept of volatility interruptions is not limited to simple futures instruments. Rather, it applies to a broader range of trading instruments including options and various types of contracts traded on exchanges. This ensures that all market participants have adequate time to assess continuing market conditions and respond appropriately.

In this context, volatility interruptions are implemented across various financial instruments to promote stability. As such, the statement asserting that they are only triggered in simple futures instruments is inaccurate. Hence, the correct option acknowledges that volatility interruptions are not confined to just one type of instrument but are applicable to multiple classes of trading products, thus invalidating the notion of their exclusive occurrence in futures.