T1 Halt¶
OVERVIEW¶
A T1 halt is a trading halt initiated when a company requests a pause in trading of its own stock to release material news to the market. The T1 code means "News Pending" — the issuer has alerted the exchange that a material announcement is forthcoming, and trading is suspended until the news is disseminated and investors have had adequate time to process it.
Note
T1 halts are issuer-initiated, not exchange-initiated. The company requests the halt; the exchange grants and enforces it across all US venues under Regulation NMS.
HOW T1 HALTS WORK¶
- Request — The company contacts its primary listing exchange (NYSE, Nasdaq, or NYSE American) and requests a halt pending a news release.
- Halt — The exchange halts trading across all US venues. Regulation NMS requires all exchanges to honor the primary listing exchange's halt.
- News release — The company issues a press release via a newswire (GlobeNewswire, BusinessWire, PR Newswire) or an 8-K filing with the SEC.
- Dissemination period — The market absorbs the news. The exchange requires a minimum dissemination window — typically 10 minutes, but often 30+ minutes for complex announcements.
- Resumption — The exchange lifts the halt and the stock re-opens via a re-opening auction, which can produce a significant gap from the pre-halt price.
Tip
Orders placed during a T1 halt rest in the book but cannot match until the halt lifts. Monitor the re-opening auction for the first confirmed price.
TYPICAL DURATION¶
| Scenario | Expected Duration |
|---|---|
| Standard earnings release | 30 – 60 minutes |
| Complex announcement (M&A, FDA) | 1 – 4+ hours |
| Regulatory review required | May extend to next trading session |
| After-hours halt (post 7:50 PM ET) | Resolves before or at next open |
Most T1 halts occur after the close at 7:50 PM ET when companies release earnings or material news outside regular trading hours.
WHAT TRIGGERS A T1 HALT¶
| Catalyst | Notes |
|---|---|
| Earnings announcements | Most frequent trigger, especially after-hours |
| M&A transactions | Acquisitions, mergers, or divestitures |
| FDA decisions | Drug approvals, trial results, Complete Response Letters |
| Guidance changes | Updated revenue or earnings outlook |
| Executive departures | CEO/CFO changes, especially unexpected ones |
| Regulatory actions | SEC investigations or enforcement actions |
| Stock offerings | Secondary registrations, follow-on pricing |
T1 VS. OTHER HALT TYPES¶
| Halt Type | Trigger | Scope | Initiated By |
|---|---|---|---|
| T1 | News pending | Single stock | Issuer |
| T12 | Additional information requested | Single stock | Exchange |
| LULD | Price-driven volatility breach | Single stock | Exchange (automatic) |
| Circuit Breaker | Index-level decline | Market-wide | Exchange (automatic) |
Note
LULD halts are price-driven; T1 halts are news-driven. Circuit breakers are market-wide events unrelated to individual company news.
WORKED EXAMPLE¶
A clinical-stage biotech company halts at 7:50 PM ET pending an FDA trial result:
| Time | Event |
|---|---|
| 7:50 PM ET | Company requests T1 halt — news pending |
| 8:01 PM ET | Press release announces positive Phase 3 trial results |
| 8:15 PM ET | Exchange lifts halt after dissemination period |
| 8:15 PM ET | Re-opening auction prints at $45 — up 80% from the $25 pre-halt close |
Tip
Stocks with high short interest and low float can gap even more violently at re-open, as short sellers are forced to cover in the auction with limited liquidity.
COMMON MISCONCEPTIONS¶
| Misconception | Clarification |
|---|---|
| The exchange forces the halt | The company requests the halt; the exchange grants it |
| You can trade during the halt | Orders rest in the book but cannot match until the halt lifts |
| A T1 halt implies positive news | The halt only means news is pending — the market may reprice sharply in either direction |