Hi Trader,Good question.. It is not so much the '2 days' time...

Hi Trader,

Good question..

It is not so much the '2 days' time frame as much as it is the need to immediately cease trading in that security / instrument. The risk of insider activity is very high as you can imagine with the money at stake.. It effectively means that the Company is in possession of information that would be perceived as being highly market sensitive.. So a Trading Halt is necessary because

a) it needs time to convert that information into an appropriate statement to market (abiding by all the rules and regulations regarding disclosure)

or

b) it needs time to finalise the details relating to that information with a third party, which could be a raise, equity placement, legal action, exploration results, take over offer, asset write down, sale of asset, etc etc

The '2 business days' is really just an arbitrary time that provides a system the markets understand well and it could be argued is a fair period of time generally speaking because it is 'limited' to those '2 days' ..

Once in a Trading Halt, either the Company can release the relevant statement within the '2 day' window and re 'open' the security for market trading or they can request a 'suspension' .. the 'suspension' is more open ended and unlike a Trading Halt is not limited to '2 days' and can go on for months