Former President Donald Trump recently lashed out at Nasdaq over a routine trading halt in shares of his social media company, Truth Social, and even threatened to move the listing to the New York Stock Exchange. Trump questioned why Nasdaq was halting the sale of DJT, the ticker symbol for Trump Media & Technology Group, and suggested that Nasdaq was taking orders from the SEC, which he accused of delaying Trump Media’s merger for political reasons. The stock saw a significant spike on Friday after Trump announced that he would not be selling shares in the company, leading to two five-minute trading pauses as a cooling-off period.
The first trading halt occurred at 2:26 p.m. ET and was lifted at 2:31 p.m. ET, shortly after Trump’s announcement during a press conference. The stock rose by 25% following his statement before being halted again at 2:34 p.m. ET for another five-minute period. Nasdaq explained that these halts were caused by limit up-limit down rules designed to protect investors and the public interest, indicating that such halts are common occurrences throughout the day for various stocks as mandated by federal regulators since 2013.
Despite the routine nature of the trading halts, Trump threatened to hold Nasdaq and potentially the SEC accountable for their actions, stating that if they continued to halt trading, he would move the stock to the New York Stock Exchange. Market experts pointed out that both Nasdaq and NYSE follow the same SEC rules, rendering Trump’s threat largely ineffective as both exchanges are subject to the same regulations. Nasdaq did not provide a response to CNN’s request for comment on the situation.
Joe Saluzzi, a market structure expert and co-founder of Themis Trading, emphasized that these trading halts are standard practice across the US exchange-listed stock market and have been in place for several years. He noted that Mr. Trump’s threats would not alter the situation as both Nasdaq and NYSE must adhere to the same SEC rules. Trump’s frustration with Nasdaq’s actions and his threats to move the stock listing highlight the complexities of the stock market regulations and the potential implications for companies and investors.
Overall, the incident involving the trading halts of Trump Media’s stock on Nasdaq sheds light on the regulatory frameworks in place to safeguard investor interests and maintain market stability. Despite Trump’s criticism of Nasdaq’s actions and threats to change stock exchanges, experts suggest that the routine trading halts were implemented in accordance with federal regulations and are standard procedures in the stock market. The episode underscores the intricacies of stock trading and the role of exchanges and regulators in overseeing market activity to ensure fairness and transparency for all stakeholders.
