The problem with rules for halting is that it is impossible to foresee liquidity conditions or the severity of a crash. How can you possible have any rules for a situation
that is completely unpredictable and unquantifiable. Bitfinex had to protect the lenders because it is their deposits that are providing the backing for all the Bitcoin that has been bought/sold on margin. Lenders stand to loose much more then the borrowers.
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What I really am interested to know is: If a crash of this scale happens again, should we expect BFX to halt trading? No doubt the answer will affect our trading strategy.
+1 - THE RULES NEED TO BE EXACTLY CLEAR BECAUSE WE POSITION OURSELVES ACCORDINGLY. If a 20% crash halts the market, then I will not set limit orders beyond a certain range.
WHAT ARE THE RULES FOR HALTING? PLEASE CREATE THEM AND FOLLOW THEM.