PT - JOURNAL ARTICLE AU - Charles Favreau AU - Ryan Garvey TI - The Effect of Tripping the US Equity Market-Wide Circuit Breaker on Liquidity: Evidence from the Coronavirus Selloff AID - 10.3905/joi.2022.1.230 DP - 2022 Nov 30 TA - The Journal of Investing PG - 21--34 VI - 32 IP - 1 4099 - https://pm-research.com/content/32/1/21.short 4100 - https://pm-research.com/content/32/1/21.full AB - We examine changes in market liquidity around the triggering of US equity market-wide circuit breakers (MWCBs). The coronavirus pandemic has led to heightened market volatility and the tripping of four MWCBs in 2020. When the market reopens following an MWCB halt, trading demand (volume) surges. The rise in trading coincides with shifts in trading activity across exchanges and dark markets, and the cost of trading rises significantly. Although the market is less liquid immediately after a halt, conditions steadily improve over time and converge to similar levels on days in which the MWCB does not trip.