Exchange And SEC-Imposed Trading Halts On Individual Stocks

Stock trading halts

Trading halts are typically imposed by one or more of the stock exchanges or a regulator, such as the SEC (Securities and Exchange Commission) or FINRA (Financial Industry Regulatory Authority).

A trading halt for a specific stock or security can occur for a number of reasons, like waiting for substantial news to be released or during periods of high volatility.

You can track current and historical trading halts on both the NYSE and the Nasdaq websites.

Trading halts for specific symbols can interrupt your orders to buy or sell particular securities. These stock-based halts are initiated by a regulator or the stock exchange where the stock is listed, not by Robinhood.

During a trading halt, one or more securities exchanges will prevent all trades of the specified security. These halts typically last less than an hour but can be longer. Halts can occur multiple times in a single trading day or remain in place over multiple trading days. If a security is in a trading pause in the last 10 minutes of the current day’s market hours, the primary listing exchange will not re-open trading for that security until the next trading day.

Keep in mind, market-wide trading halts can also be implemented by exchanges during periods of heightened volatility across the broader market.

When a halt is in place, you can place orders as usual, but they won’t be processed until after the halt has been removed from the affected security.

You can place new orders during a trading halt, but new or existing orders will not be processed until the market reopens or the trading halt is removed. This applies to market-wide halts and halts on specific securities.

If you enter a good-til-canceled order and the market closes while a halt is in effect, your order will be held for execution at the opening of the next trading day. Additionally, good-for-day orders will be canceled at the end of the trading day regardless of whether a trading halt is in effect.

All new and outstanding orders will remain pending until markets reopen, or the trading halt is removed. When the halt ends, your orders will be processed. This also applies to options orders.

Your stock orders might not be filled after a halt is lifted for a number of reasons. The most common reasons are:

• Limit orders
• Canceling a pending order

However, be sure to check the details of your specific order to determine why it wasn't filled.

Limit orders

It's possible for a halted security to begin trading at a very different price when trading resumes for it. If your stop or limit price hasn’t been reached, your order will remain pending until there's a buyer or seller willing to trade at your specified price or until the order expires.

Canceling a pending order

While a halt is in place, you can still cancel or replace a pending order before it’s executed in the market if the order is for whole shares. However, there are some differences when trying to cancel a pending fractional order.

The option to cancel your fractional order might be available, but your order can't be canceled until the halt is lifted and the stock begins trading again. Also, if your order includes a fractional share amount, has been routed to a market center, and a trading halt goes into effect before the order executes, you can’t cancel the order. The order will execute when the halt is lifted.

We’re working to make improvements with this experience. These halts are not Robinhood's decision and the timing of them is beyond our control.

When trading is halted, charts reflect the price of the last filled order. No trades are being executed, so prices neither rise nor fall. Rest assured, the price most likely didn’t flatline at zero. When the market reopens, the chart should display normally again.

During a trading halt, no orders are being processed so the mark price defaults to the $0.01 in the app. Market prices will go back to normal after the halt is over.

Trading during extended hours comes with additional risks, such as lower liquidity and higher volatility. You can learn more in the Extended-Hours Trading Disclosure.

Fractional shares are not liquid outside of Robinhood and not transferable. For a complete explanation of conditions, restrictions and limitations associated with fractional shares, review the Fractional Shares section in our Customer Agreement.