Price Discovery Pause

A Price Discovery Pause is a temporary cessation of trading activity designed to allow the market to digest new information or recover from extreme volatility. During this period, the matching engine stops executing trades, effectively freezing the price to prevent further downward pressure.

This pause is intended to provide a window for order books to rebuild and for traders to adjust their strategies. It is a form of circuit breaker that focuses on allowing information asymmetry to resolve before trading resumes.

By preventing forced selling during moments of panic, the pause helps stabilize the asset price. It is a critical tool for maintaining fair and orderly markets in the face of sudden, unexpected volatility.