easy · Market Microstructure
The 'Limit Up-Limit Down' (LULD) mechanism prevents a Tier 1 security from trading more than 5% away from its 5-minute average reference price.
If a stock enters a 'limit state' and does not recover within 15 seconds, what is the regulatory result?
- The stock is delisted for the remainder of the session.
- The market-wide circuit breaker is activated.
- All trades within that window are cancelled.
- A 5-minute trading halt is triggered.
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