Suspended trading definition
Suspended trading
Suspended trading occurs when a central regulatory body initiates a temporary halt in the trading of a product. At that time investors and traders are unable to execute or place trades for the product.
Suspended trading may occur for several reasons including a lack of accurate or adequate information regarding a company or asset, questions about the accuracy of public information regarding a company or asset, or concerns about insider trading or market manipulation regarding the stock or other asset.
How long is trading suspended?
The length of a suspended trading period varies among countries. In the US, the SEC can suspend trading in any stock for up to 10 days. In the UK, the FCA can suspend trading indefinitely. Often an investigation occurs during suspended trading that may result in the permanent removal of an asset from an exchange.