Delayed opening occurs in which scenario?

Delayed opening occurs in which scenario?

• A. In CLOB market model - if stop trading range is exceeded during opening
• B. When there are no quotes in QDM
• C. QDM - order book contains no quotes
• D. When the market is halted for a scheduled news release

Answer: (C)

Opening price discovery relies on being able to see bids and offers to establish a fair opening price. If the QDM order book has no quotes at all, there is no liquidity and no price level to anchor the opening trade. In that situation, the market cannot determine an opening price, so the opening is delayed until quotes appear. This exactly describes the scenario where the QDM order book contains no quotes, triggering a delayed opening. This is different from a market halt due to a scheduled news release or a halt caused by exceeding a stop-trading range, which pause trading for other reasons rather than simply waiting for quotes to appear.

Opening price discovery relies on being able to see bids and offers to establish a fair opening price. If the QDM order book has no quotes at all, there is no liquidity and no price level to anchor the opening trade. In that situation, the market cannot determine an opening price, so the opening is delayed until quotes appear. This exactly describes the scenario where the QDM order book contains no quotes, triggering a delayed opening.

This is different from a market halt due to a scheduled news release or a halt caused by exceeding a stop-trading range, which pause trading for other reasons rather than simply waiting for quotes to appear.