Regulatory Halt of a Security Law and Legal Definition
According to 17 CFR 41.1 [Title 17 -- Commodity And Securities Exchanges; Chapter I -- Commodity Futures Trading Commission; Part 41 -- Security Futures Products; Subpart A -- General Provisions], regulatory halt of a security means “a delay, halt, or suspension in the trading of a security, that is instituted by the national securities exchange or national securities association that lists the security, as a result of:
(1) A determination that there are matters relating to the security or issuer that have not been adequately disclosed to the public, or that there are regulatory problems relating to the security which should be clarified before trading is permitted to continue; or
(2) The operation of circuit breaker procedures to halt or suspend trading in all equity securities trading on that national securities exchange or national securities association.”
