Halt (Trading Halt)

A temporary pause in the trading of a security on an exchange, triggered by regulatory action, pending news, or extreme price volatility. The SEC or an exchange like the NYSE can impose a halt to give all market participants time to absorb material information. Market-wide circuit breakers, introduced after the 1987 crash, automatically halt all trading when the S&P 500 drops 7%, 13%, or 20% in a single session.