A set of mechanisms that are activated and put in place to mark and enforce a temporary pause of trading in a security by securities exchanges during the trading day to allow a company to release important news so that its stock is not substantially affected by so far unabsorbed news. A trading halt can also be called where there is a significant order imbalance between the buyers and sellers of a specific security.

Exchange authorities don’t not just halt or delay trading in a security for news pending or order imbalances, but also can suspend trading for up to several days (e.g. ten days) and, if appropriate, take action to revoke a security’s registration. Securities exchanges are self-regulatory organizations (SROs), which means they have authority to develop and enforce their own rules and standards.

There are two types of trading halts and delays: regulatory and non-regulatory. A regulatory halt and delay is imposed when a public company has pending news and developments that may impact its security’s price. By halting or delaying trading, traders and investors can take more time to consider the potential effect of the news releases.

Other types of regulatory halt or delay include halted or delayed trading in a security in the midst of uncertainty as to the ability of the issuer to continuously comply with the exchange’s listing requirements.