Tag Archives: regulatory halt

What is a Trading Halt?

In contrast to an SEC trading suspension, which lasts for 10 days over a public interest concern, a trading halt is used by is used by securities exchanges like the New York Stock Exchange (NYSE) and the NASDAQ, and usually lasts less than an hour.

Reasons for a Trading Halt

A trading halt can be called at any time during the trading day

  1. So a public company can release important news which is likely to have a huge effect, either positive or negative, on the stock’s volume; or
  2. When there is a major imbalance in orders between buyers and sellers in a stock.

What is a Trading Delay?

A trading halt is also called a trading delay.   The term “delayed opening” is used when a securities exchange halts trading at the start of the trading day.

Types of Trading Halts and Delays

There are two different kinds of trading halts and delays.

  1. Regulatory, usually when a public company has pending news that the exchange believes will cause a volume spike.   This allows market participants time to assess the impact of the news release.
  2. Non-regulatory, usually when there is a question about whether the security continues to meet the exchanges listing requirements or when there is a significant order imbalance.