The effect of trading halts on the speed of price discovery

Shmuel Hauser, Haim Kedar-Levy, Batia Pilo, Itzhak Shurki

Research output: Contribution to journalArticlepeer-review

8 Scopus citations


Trading halts are aimed at reducing information asymmetry by granting investors the opportunity to reassess trades upon arrival of new, substantial information. This study is the first to address the efficiency of the price discovery process with respect to time, i.e., the speed of adjustment to new information. A unique database allow us to conduct an event study analysis and measure the impact of trading halts on price discovery while controlling for content, operational and value effects. We find that information dissemination following trading halts is over 40% faster and that abnormal trading activity is positively related to the speed of price adjustment.

Original languageEnglish
Pages (from-to)83-99
Number of pages17
JournalJournal of Financial Services Research
Issue number1
StatePublished - Feb 2006
Externally publishedYes


  • Market efficiency
  • Speed of price discovery
  • Trading halts


Dive into the research topics of 'The effect of trading halts on the speed of price discovery'. Together they form a unique fingerprint.

Cite this