Under SLS, when is trading interrupted?

Under SLS, when is trading interrupted?

• A. Trading will be interrupted if no midpoint price for the relevant security can be calculated on the primary reference market, or trading in the security on the primary reference market is interrupted or suspended.
• B. Trading is never interrupted.
• C. Only when price reaches limit.
• D. Only during lunch.

Answer: (A)

Under SLS, trading is interrupted whenever there is no midpoint price for the security on the primary reference market, or when trading in the security on the primary reference market is interrupted or suspended. The primary market provides the price discovery reference for SLS, and if it cannot produce a reliable midpoint or if trading on that market is halted, there’s no sound basis to continue cross-market trading, so a pause is issued to protect investors. This isn’t about hitting a price limit or a lunch break—those aren’t the triggering factors in this system.

Under SLS, trading is interrupted whenever there is no midpoint price for the security on the primary reference market, or when trading in the security on the primary reference market is interrupted or suspended. The primary market provides the price discovery reference for SLS, and if it cannot produce a reliable midpoint or if trading on that market is halted, there’s no sound basis to continue cross-market trading, so a pause is issued to protect investors. This isn’t about hitting a price limit or a lunch break—those aren’t the triggering factors in this system.