Facts About After Hours Trading

In the US stock market, the regular business hoursthe business hours, he must be a customer of a
are usually from 9.30 a.m. to 4.00 p.m.; and previouslybrokerage firm that has an ECN or has access to
individual investors could buy and sell stocks onlyanother firm's ECN. Some ECNs are regulated by
during the regular business hours of the stockexchanges, while others are unregulated. There are
exchanges.still other ECNs that are sidelines of brokers and
However, in the 1990s, things changed and afterdealers. The most popular ECNs used nowadays
hours trading was allowed. This was restricted to highinclude Island, Instinet, Archipelago, XT and Market.
net worth individuals and big financial institutions. ThisECNs do not operate during the same hours as
trading was done online and led to a demand fromtraditional markets and they do not come under the
individual investors for after hours trading, which wassame rules as the markets. Most ECNs are affiliated
ultimately given.to online brokerage firms and have their own rules. If
The Electronic Communications Networks (ECNs) areyou want to buy or sell stocks, the ECN will match
electronic trading venues that made it possible foryou with another investor. If the match happens, the
investors to trade after the business hours of thetrade is executed. If there is no match, the ECN will
major stock exchanges. These venues allowpost your offer to the order book or route your
investors to access the networks so that they canorder to another market center provided it is linked
trade in the marketplace outside the business hours.to other ECNs and exchanges.
In order to for an individual investor to trade after