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Extended-hours trading connection to NYSE Arca
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{{Distinguish|Late trading|Aftermarket (finance)}}
{{Distinguish|Late trading|Aftermarket (finance)}}
{{Globalize|article|US|date=June 2020}}
{{Globalize|article|US|date=June 2020}}
{{Financial markets}}
'''Extended-hours trading''' (or '''electronic trading hours''', '''ETH''') is [[stock trading]] that happens either before or after the [[trading day]] of a [[stock exchange]], i.e., '''pre-market trading''' or '''after-hours trading'''.
'''Extended-hours trading''' (or '''electronic trading hours''', '''ETH''') is [[stock trading]] that happens either before or after the [[trading day]] of a [[stock exchange]], i.e., '''pre-market trading''' or '''after-hours trading'''.<ref>{{cite web |title=Extended Trading |url=https://www.nasdaq.com/market-activity/quotes/extended-trading}}</ref>


After-hours trading is the name for buying and selling of [[Security (finance)|securities]] when the major markets are closed.<ref>{{cite book|last1=Sulthan|first1=.A|title=Stock Market Dictionary|date=2017|publisher=Sulthan Academy|isbn=978-1522022862|pages=229|edition=1}}</ref> 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&nbsp;a.m. to 4:00&nbsp;p.m. [[Eastern Time Zone|Eastern Time]] (ET).<ref>{{cite web |url=https://www.nyse.com/about/history/timeline_1980_1999_index.html |title=About Us: History |publisher=NYSE |accessdate=2007-04-11 |archive-url=https://web.archive.org/web/20100618084759/http://www.nyse.com/about/history/timeline_1980_1999_index.html |archive-date=2010-06-18 |url-status=dead }}</ref> Pre-market trading occurs from 4:00&nbsp;a.m. to 9:30&nbsp;a.m. ET, although the majority of the volume and liquidity come to the pre-market at 8:00AM ET.<ref>{{cite web|title=Pre-Market Trading|url=https://www.investorsunderground.com/pre-market-trading/|website=Investors Underground|accessdate=11 November 2016}}</ref><ref name="schedule">{{cite web |url=http://www.nasdaq.com/about/schedule.stm |title=Nasdaq Trading Schedule |publisher=NASDAQ |accessdate=2011-08-02}}</ref> After-hours trading on a day with a normal session occurs from 4:00&nbsp;p.m. to 8:00&nbsp;p.m. ET.<ref name="schedule"/> [[Market maker]]s and specialists generally do not participate in after-hours trading, which can limit liquidity.<ref>{{cite web|title=After Hours Trading|url=https://www.investorsunderground.com/after-hours-trading/|website=Investors Underground|accessdate=11 November 2016}}</ref>
After-hours trading is the name for buying and selling of [[Security (finance)|securities]] when the major markets are closed.<ref>{{cite book|last1=Sulthan|first1=.A|title=Stock Market Dictionary|date=2017|publisher=Sulthan Academy|isbn=978-1522022862|pages=229|edition=1}}</ref> 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 9:30a.m. to 4:00 p.m. [[Eastern Time Zone|Eastern Time]] (ET).<ref>{{cite web |url=https://www.nyse.com/about/history/timeline_1980_1999_index.html |title=About Us: History |publisher=NYSE |accessdate=2007-04-11 |archive-url=https://web.archive.org/web/20100618084759/http://www.nyse.com/about/history/timeline_1980_1999_index.html |archive-date=2010-06-18 |url-status=dead }}</ref> Pre-market trading occurs from 4:00a.m. to 9:30a.m. ET, although the majority of the volume and liquidity come to the pre-market at 8:00AM ET.<ref>{{cite web|title=Pre-Market Trading|url=https://www.investorsunderground.com/pre-market-trading/|website=Investors Underground|accessdate=11 November 2016}}</ref><ref name="schedule">{{cite web |url=http://www.nasdaq.com/about/schedule.stm |title=Nasdaq Trading Schedule |publisher=NASDAQ |accessdate=2011-08-02}}</ref> After-hours trading on a day with a normal session occurs from 4:00 p.m. to 8:00 p.m. ET.<ref name="schedule"/> [[Market maker]]s and specialists generally do not participate in after-hours trading, which can limit liquidity.<ref>{{cite web|title=After Hours Trading|url=https://www.investorsunderground.com/after-hours-trading/|website=Investors Underground|accessdate=11 November 2016}}</ref>
[[Image:Screenshot-Google-Finance-AMZN-Extended-Hours-Trading.png|thumb|Example chart of extended-hours trading, via Google Finance]]
[[Image:Screenshot-Google-Finance-AMZN-Extended-Hours-Trading.png|thumb|Example chart of extended-hours trading, via Google Finance]]


Trading outside regular hours is not a new phenomenon but used to be limited to high-net-worth [[investor]]s and [[institutional investor]]s like [[mutual fund]]s.<ref>{{cite web|title=SEC.gov|url=https://www.sec.gov/investor/pubs/afterhours.htm|publisher=United States Securities and Exchange Commission}}</ref> The emergence of private trading systems, known as [[electronic communication network]]s (ECNs), has allowed individual investors to participate in after-hours trading.
Trading outside regular hours is not a new phenomenon but used to be limited to high-net-worth [[investor]]s and [[institutional investor]]s like [[mutual fund]]s.<ref>{{cite web|title=SEC.gov|url=https://www.sec.gov/investor/pubs/afterhours.htm|publisher=United States Securities and Exchange Commission}}</ref> The emergence of private trading systems, known as [[electronic communication network]]s (ECNs), has allowed individual investors to participate in after-hours trading. Pre-market trading and after-hours trading is all processed through ECNs including [[NYSE Arca]].<ref>{{Cite web |title=Stock Market Hours and NYSE Holidays 2022 • daytradingz.com |url=https://daytradingz.com/stock-market-hours/ |access-date=2022-03-13 |website=daytradingz.com |language=en-US}}</ref><ref>{{Cite web |title=stock exchange {{!}} Definition, Meaning, History, & Facts {{!}} Britannica |url=https://www.britannica.com/topic/stock-exchange-finance |access-date=2022-03-13 |website=www.britannica.com |language=en}}</ref>


[[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 [[U.S. Securities and Exchange Commission|SEC]] order handling rules).<ref>{{Cite document |last = Barclay | first = Michael J. |title = Price Discovery and Trading After Hours |publisher = University of California, Berkeley |year=2003 }}</ref>
[[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 [[U.S. Securities and Exchange Commission|SEC]] order handling rules).<ref>{{Cite document |last = Barclay | first = Michael J. |title = Price Discovery and Trading After Hours |publisher = University of California, Berkeley |year=2003 }}</ref>

Revision as of 19:48, 13 March 2022

Not to be confused with Late trading or Aftermarket (finance).
Part of a series on
Financial markets
Looking up at a computerized stocks-value board at the Philippine Stock Exchange
Bond market
Stock market
Other markets
Over-the-counter (off-exchange)
Trading
Related areas

Extended-hours trading (or electronic trading hours, ETH) is stock trading that happens either before or after the trading day of a stock exchange, i.e., pre-market trading or after-hours trading.[1]

After-hours trading is the name for buying and selling of securities when the major markets are closed.[2] 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 9:30a.m. to 4:00 p.m. Eastern Time (ET).[3] Pre-market trading occurs from 4:00a.m. to 9:30a.m. ET, although the majority of the volume and liquidity come to the pre-market at 8:00AM ET.[4][5] After-hours trading on a day with a normal session occurs from 4:00 p.m. to 8:00 p.m. ET.[5] Market makers and specialists generally do not participate in after-hours trading, which can limit liquidity.[6]

Example chart of extended-hours trading, via Google Finance

Trading outside regular hours is not a new phenomenon but used to be limited to high-net-worth investors and institutional investors like mutual funds.[7] The emergence of private trading systems, known as electronic communication networks (ECNs), has allowed individual investors to participate in after-hours trading. Pre-market trading and after-hours trading is all processed through ECNs including NYSE Arca.[8][9]

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).[10]

See also

References

  1. ^ "Extended Trading".
  2. ^ Sulthan, .A (2017). Stock Market Dictionary (1 ed.). Sulthan Academy. p. 229. ISBN 978-1522022862.
  3. ^ "About Us: History". NYSE. Archived from the original on 2010-06-18. Retrieved 2007-04-11.
  4. ^ "Pre-Market Trading". Investors Underground. Retrieved 11 November 2016.
  5. ^ a b "Nasdaq Trading Schedule". NASDAQ. Retrieved 2011-08-02.
  6. ^ "After Hours Trading". Investors Underground. Retrieved 11 November 2016.
  7. ^ "SEC.gov". United States Securities and Exchange Commission.
  8. ^ "Stock Market Hours and NYSE Holidays 2022 • daytradingz.com". daytradingz.com. Retrieved 2022-03-13.
  9. ^ "stock exchange | Definition, Meaning, History, & Facts | Britannica". www.britannica.com. Retrieved 2022-03-13.
  10. ^ Barclay, Michael J. (2003). "Price Discovery and Trading After Hours" (Document). University of California, Berkeley.

Public Domain This article incorporates text from this source, which is in the public domain: https://www.sec.gov/investor/pubs/afterhours.htm


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