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Because futures are expiring contracts. They need the breaks to conduct settlements. These breaks are also used to ensure minimum margin requirements are being met. It is basically a "true up" moment.
I agree a lot of things about futures (large contract sizes) are probably hold overs. The CME publishes recommended "initial margin" requirements but I think it is up the member firms what rate they actually set or else how could they offer the cheaper day trading rates? So, I think if you're a member firm then the CME is kinda trusting you to manage your book.
Right, whatever broker you are trading at should be managing your risk to prevent you from going over but the clearing with the counter party is probably not processed until after the close.
Trading: Primarily Energy but also a little Equities, Fixed Income, Metals and Crypto.
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While it might seem obvious but the daily break in trading separates sessions into different days. This is important for multiple reasons, both from an accounting and bookkeeping perspective and an operations perspective. These include but are not limited to
Margining Requirements
PnL Processes
Settlement Price
PnL Calculation / Margining
Break Point for Broker Account Statements
Regulatory Reporting Cutoff
Position Limit Accountability Reporting
Volume / Open Interest Reports / CFTC Reports
Futures & Options Expiration / Exercise
Lots of Computer Stuff / Logistics
Reset Trade Numbers / Volume Account etc
Re-establish settlements (there are contracts that trade at differentials to prior settlement and not outright price)
Ha - "Broker Managing Your Risk" ? That's a funny one -- last time i checked in the last 10 years - they do EVERYTHING to get you to be OVER LEVERAGED!
That being said there are brokers like FT71 that I appreciate and do really care about traders.
-- last time i checked in the last 10 years - they do EVERYTHING to get you to be OVER LEVERAGED!