Abstract
We examine the effect of the Capital Market Authority's decision to cancel an entire day's trades on the returns of listed banks. To investigate the impact of this event, we use the event-study method and apply it over a defined period. Our results provide evidence of a significant negative effect from the cancellation of a day's trading on banks' returns over the examined period. However, further analysis indicates that this effect turned insignificant once additional announcements that found favour with investors were made. These findings confirm the harmful cost of cancellation decision that first-ever happened in the financial markets.