This study aims to analyze the legal regulation of the implementation of trading halt as a stability mechanism in the Indonesian capital market system, examine its implementation from the perspective of legal certainty and investor protection, and formulate an ideal regulatory framework to achieve capital market stability and legal protection for investors. This research employs a normative legal research method using statutory, conceptual, and case approaches. The legal materials consist of primary, secondary, and tertiary legal sources analyzed qualitatively. The results indicate that the implementation of trading halt has a legal basis through the Capital Market Law and regulations of the Indonesia Stock Exchange as an instrument for controlling market volatility. However, its regulation still faces issues related to legal certainty, flexibility of trading suspension parameters, and protection of investor rights. Therefore, a more comprehensive, transparent, proportional, and accountable regulatory formulation is needed so that the implementation of trading halt can maintain capital market stability while providing optimal legal protection for investors in Indonesia.
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