(October 5 12:00 ET) – Charles
Schwab & Co. Inc. is the latest
player entering the after-hours
trading game. It will soon open a
daily after-hours session from
16:30 EST to 19:00 ET for select
Nasdaq issues.
It will accept retail limit
orders online or by telephone.
Institutional trades will first be
limited to trader-assisted
transactions, but they are
expected to go online too, in
November. Commission rates will be
the same after-hours as they are
in regular trading sessions.
Schwab says that the key to its
after-hours strategy is its
partnership in the REDIBook
electronic communication network (ECN).
Schwab has partnered will
Fidelity Investments, Spear,
Leeds & Kellogg, and Donaldson,
Lufkin and Jenrette to build
the ECN.
So far the after-hours trading
experiment has been limited to the
U.S. where the panopoly of ECNs
that trade Nasdaq listings have
been able to scrape up enough
liquidity to extend their
sessions.
Recently retail investors have
been allowed into the game too
through firms such as Datek and
E*Trade that have their own
relationships with ECNs.
-IE Staff
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