Volatility Trading Pauses

What this video covers

• How a trading pause stops executions but still permits bids and offers to be displayed
• How to classify national market system (NMS) stocks as Tier 1 or Tier 2, including rights and warrants outside the Plan and leveraged exchange-traded products (ETPs) excluded from Tier 1
• The LULD percentage parameters: 5% and 10% above $3, 20% from $0.75 through $3, and the lesser of $0.15 or 75% below $0.75
• How the rolling five-minute reference price, 1% update trigger, and 30-second minimum hold time reset the bands
• How a limit state differs from a non-executable quote and a straddle state
• Why a limit state that fails to clear within 15 seconds creates a mandatory pause, while a straddle state can lead to a discretionary pause
• How reopening works after five minutes, including zero bid or offer conditions, alternate exchange requirements, and the final rules