How do price limits and trading halts matter in price formation?
If you're talking about "circuit breakers" that close the markets in case of bad stuff (10%-30% drops in a day), then you're asking a question that has never been a factor in today's markets. I don't think there has ever been a closing of the markets since 9/11.
I'd imagine they'd merely be considered outliers, which is what we are trained to look at anyways and take into account, just don't try to trade them after they force a market shutdown lest that not be the end of the trend. |
