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Quantitative Finance · Glossary

What is Trading pause, reopening auction?

Also known as: trading pause · reopening auction

Definition 25.2 Microstructure and Execution · Chapter 25 — Circuit Breakers and Halts

A trading pause suspends continuous trading in an instrument for a short, set time while orders may still be entered, modified and cancelled; it ends with a reopening auction, a call auction (One Quant Book 1, chapter 13) that sets the price at which trading resumes.

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