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LULD Amendment 12 Update

  1. Why was LULD Amendment 12 introduced?

    LULD Amendment 12 was created to standardize automated re-openings across markets following a Trading Pause. LULD Amendment 12 was made effective on November 20, 2017.

  2. How will Trading Pause Resumption Auctions function?

    Halt Auctions will be collared to reduce volatility coming out of a Trading Pause, and trading may not resume until the Auction has completed on the Primary Listing Exchange (PLE) and LULD Price Bands have been disseminated. The collar price will initially be set to 5% wider than the LULD Band that triggered the Trading Pause in the direction of the triggering LULD Band. The initial Halt Auction will run for five minutes. If, at the end of the Halt Auction period the symbol cannot reopen, the collar price is widened again by the same initial amount and the Auction is extended five additional minutes. All subsequent extensions operate the same, but re-openings can occur at any time following the second extension provided the execution is within the auction collar. For Halt Auctions that had a LULD Band trigger price under $3, a $0.15 initial price collar will be used and additional halt extensions will widen the collar price in $0.15 increments.

  3. What if the Trading Pause is to resume after 3:50 pm ET?

    If the expected end time of a Halt Auction is to occur after 3:50 p.m. ET the Primary Listing Exchange will not execute the Halt Auction and will instead transition and hold a single closing auction at 4:00 p.m. ET. The BZX Exchange will conduct a Volatility Close Auction (as described above) in this case.

  4. What if the Primary Listing Exchange is unable to Re-open?

    If the Primary Listing Exchange is unable to re-open a security due to technical issues, then other Exchanges may re-open upon receipt of a LULD Price Band from the SIP. The Reference Price for the security will be equal to the Price Band that caused the limit state which led to the Trading Pause. No other exchanges can resume trading until at least 10 minutes after a Trading Pause is triggered.

  5. What if the Re-opening price is far away from the previous trade?

    Trades that occur during the Halt Auction are not eligible for review under Clearly Erroneous Execution rules.

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