MarketXT Begins After-Hours Trading
MarketXT Inc. executed 142 orders and traded about $3.5 million worth of stock in its inaugural after-hours session Wednesday.
Investors placed about 1,200 orders during the two-hour session, meaning about 12% of orders were completed. Like most competing after-hours systems, MarketXT requires investors to place “limit” orders specifying the prices at which they would buy or sell shares.
To complete a trade, an individual must find another investor or a market-making firm willing to trade at that price. Otherwise, the order goes unfilled.
New York-based MarketXT has said it wants to launch its system slowly. In a conference call with reporters, Chief Executive Michael Sanderson said he was pleased with the launch.
Microsoft was the most heavily traded stock, with 5,500 shares changing hands. After rising $3.13 to $95.31 on Nasdaq in regular trading, it climbed another 25 cents to $95.56 on MarketXT.
About 611 shares were traded per order, and there were more than 300,000 hits on MarketXT’s Web site. The session lasted from 3 to 5 p.m. Pacific time.
The average stock price change from the close of regular trading was about 0.5%, MarketXT said. The average spread between “bid” (the price at which someone will buy from you) and “ask” (the price at which someone will sell to you) was 6.25 cents to 25 cents.
Several other firms offer after-hours trading to individuals, including CyBerCorp’s CyBerBroker and Datek Online Brokerage Services.
Datek, which offers late trading from the market close until 2:15 p.m. Pacific time, is handling about 800 trades a day, according to Bloomberg News. Datek sends orders across Island, an electronic communications network owned by Datek’s parent company.
To trade through MarketXT, individuals must have accounts at participating online brokers. Currently, Discover Brokerage and Dreyfus Brokerage Services have signed up.
