Definition of H11 Trading Halt Code
A stock that I own or follow has been halted by the Nasdaq. The Nasdaq has assigned a trading halted code of H11 to the stock. What does this mean? What gives?
First off, there are a number of different reasons that a stock can be halted. You have:
T1 - News Pending
T6 - Extraordinary Market Activity
H11 - Regulatory Concern
In the event of an H11 halt, the Nasdaq is halting a stock in conjunction with another exchange.
CTIC is a company that trades on both the Nasdaq and the Borsa Italiana.
Recently, the Borsa Italiana "suddenly" halted trading in CTIC's shares.
The Nasdaq, pursuant to Marketplace Rule 4120(a)(4), also halted trading in CTIC's shares.
Why, you might ask?
Marketplace Rule 4120(a)(4) states that the Nasdaq will "honor" halts that take place on other listings if a company has a dual listing. So, since the stock was halted on the Borsa Italiana, the stock was also halted on the Nasdaq.
Example: Research in Motion
Research In Motion (RIMM) is listed on both the Toronto Stock Exchange and the Nasdaq.
If this stock was halted on the Toronto Stock Exchange, then it would also be halted on the Nasdaq as well, and given a reason code of H11. Once the stock resumed trading on the Toronto Stock Exchange, then the Nasdaq could lift the trading halt.
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