Extended-hours trading

Not to be confused with Late trading.

Extended-hours trading is stock trading that happens either before or after the normal trading hours of a stock exchange, i.e. pre-market trading or after-hours trading.

Since 1985, the regular trading hours for major exchanges in the United States, such as the New York Stock Exchange and the Nasdaq Stock Market, have been from 9:30 a.m. to 4:00 p.m. Eastern Time (ET).[1] Pre-market trading occurs from 4:00 a.m. to 9:30 a.m. ET.[2] After-hours trading on a day with a normal session occurs from 4:00 p.m. to 8:00 p.m. ET.[2]

Example chart of extended hours trading, via Google Finance

Trading outside regular hours is not a new phenomenon but previously was limited to high-net-worth investors and institutional investors like mutual funds.[3] The emergence of private trading systems, known as electronic communication networks (ECNs), has allowed individual investors to participate in after-hours trading.

Financial Industry Regulatory Authority (FINRA) members who voluntarily enter quotations during the after-hours session are required to comply with all applicable limit order protection and display rules (e.g., the Manning Rule and the SEC order handling rules).[4]

See also

References

  1. ↑ "About Us: History". NYSE. Retrieved 2007-04-11.
  2. 1 2 "Nasdaq Trading Schedule". NASDAQ. Retrieved 2011-08-02.
  3. ↑ "SEC.gov". United States Securities and Exchange Commission.
  4. ↑ Barclay, Michael J. (2003). "Price Discovery and Trading After Hours". University of California, Berkeley.

External links

 This article incorporates public domain material from the United States Government document "http://www.sec.gov/investor/pubs/afterhours.htm".

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