What is 'Held at the Opening'

Held at the opening is when a security is restricted from trading at the stock exchange opening for the day.

BREAKING DOWN 'Held at the Opening'

Held at the opening is in effect if a halt on trading a stock is called before the opening of the trading day. Stock exchanges can halt trading on securities at any time, but trading usually resumes in under an hour. Such halts are employed to protect investors. There are three main reasons why a stock is held at the opening: new information is expected to be released by a company that may have considerable impact on its stock price; there is an imbalance in buy and sell orders in the market; a stock does not meet regulatory listing requirements. Trading delays are trading halts that occur at the beginning of the trading day. Traders can find trading halt and delay information on an exchange’s website.

A trading halt in general is a temporary suspension in the trading of a particular security on one or more exchanges, usually in anticipation of a news announcement or to correct an order imbalance. A trading halt may also be imposed for regulatory reasons. During a trading halt, open orders may be canceled and options may be exercised.

Trading halts

The Securities and Exchange Commission (SEC) highlights two types of trading halts and delays that may impact investors: regulatory and nonregulatory. While the SEC cannot halt trading, it may suspend trading for up to 10 days and, if needed, revoke the security’s registration. Regulatory halts occur when a company has pending news that may affect the security’s price. By halting or delaying trading, everyone has time to assess the impact of the news. These halts may also occur in cases when a security may not continue to meet an exchange’s listing standards. Non-regulatory halts occur when there is a significant imbalance in pending buy and sell orders in a security. Exchange specialists typically respond by disseminating information to investors concerning a price range where trading may begin again on the exchange. Notably, non-regulatory halts are not shared across exchanges, so the security may continue to trade.

Exchange circuit breakers

Stock exchanges can take measures to ease panic selling by invoking Rule 48 and halting trading. Under the 2012 rules, market-wide circuit breakers kick in when the S&P 500 index drops 7% for Level 1; 13% for Level 2; and 20% for Level 3 from the prior day’s close. A market decline that triggers a Level 1 or 2 circuit breaker before 3:25 p.m. Eastern Time will halt trading for 15 minutes, but will not halt trading at or after 3:25 p.m.

RELATED TERMS
  1. Fast Market

    A fast market is a condition officially declared by a stock exchange ...
  2. SSE Composite

    The SSE Composite is a market composite made up of all the A-shares ...
  3. Trade Resumption

    Trade resumption refers to the commencement of trading activities ...
  4. Fast Market Rule

    The fast market rule is a rule in the United Kingdom that if ...
  5. Imbalance of Orders

    Imbalance of orders is when too many orders of a particular type ...
  6. Lock Limit

    A lock limit is a specified price movement determined by trading ...
Related Articles
  1. Insights

    Construction Halted on Dakota Pipeline (ETE, ETP)

    The Obama administration announced on September 9, 2016 that construction on federal lands would be temporarily halted.
  2. Insights

    Markets Given Boost After Weekend Brexit Poll

    Markets get some relief after weekend poll sees a shift back towards the "Remain" camp
  3. Investing

    Tilray Shares Halted 5 Times In Wild Trading Day

    The company's shares surged 93%, traded in the red and saw multiple trading halts, all in one day.
  4. Investing

    NYSE Glitch Halts Trading in 199 Tickers (ICE)

    A technical glitch described as a "critical issue" has halted trading in 199 tickers on the New York Stock Exchange.
  5. Tech

    SEC Halts Trading In 3 Firms Linked To Blockchain and Cryptocurrencies

    The SEC suspended trading for three penny stocks whose firms had ties to blockchain and cryptocurrencies.
  6. Tech

    Bitcoin Price Plunges 20% After Hackers Steal $72 Million

    Bitcoin price falls 20% after a security breach at a Hong Kong-based exchange.
  7. Investing

    The Auction Method: How NYSE Stock Prices are Set

    Find out how the New York Stock Exchange (NYSE) runs an auction process known as open outcry to set stock prices during the opening and closing auctions.
  8. Investing

    The SEC Wants a Comprehensive Review of the ETF Industry

    Judging by two ugly incidents last year, it's time the products received some scrutiny.
  9. Investing

    The SEC Is Requesting Key Documents DryShips

    Shares of the bulk shipping company are down 12 percent this morning after reporting a $37.12 per share loss in the second quarter.
  10. Tech

    Stocks Recover from Overnight Selloff on Trump Victory

    When news broke that Trump would be the next president, Dow futures fell as much as 700 points and gold rallied 3%. Things have calmed down a bit since.
RELATED FAQS
  1. Move from an OTC to a major exchange

    In order to move a company from over-the-counter market to a major exchange, a number of conditions must be met to being ... Read Answer >>
  2. What is the downtick-uptick rule on the NYSE?

    To ensure orderly markets, the New York Stock Exchange (NYSE) has a set of restrictions that it can implement when experiencing ... Read Answer >>
  3. Why are the bid and ask quotes usually so far away from each other in after-hours ...

    The low volumes typically traded through after-hours trading systems can create wide bid-ask spreads. Read Answer >>
  4. What are all of the securities markets in the U.S.A?

    Securities can be bought and sold via a number of exchanges in the US. Learn about the major and somewhat lesser-known U.S. ... Read Answer >>
Trading Center