BOX Developing Plan for After-Hours Trading
Options traders may get an opportunity to buy and sell US options in after-hours trading thanks to a plan under development by BOX Options Exchange (BOX).
In a Financial Times piece, Tony McCormick, chief executive of BOX, told Hal Weitzman that the exchange was developing an after-hours platform. It is still in îvery early stages.î
McCormick explained, "It exists for stocks, why not a subset of the options world? Electronic trading firms already accept some orders after-hours."
But would this be a good thing? The Options Insider founder Mark Longo thinks so.
Longo said, "This could be huge ñ especially for options on stocks like Apple around earnings, the implications are enormous. This could open the floodgates to more retail participation in the options market.î
He added that retails traders can't trade options after the quarterly earnings reports because the markets are closed. When the markets reopen, options traders have missed out on the initial market reaction.
A timeline hasn't been set but McCormick said the exchange is reviewing a bulletin board that would allow limit orders in 30 to 50 stock options that are ìliquid enough in the underlying equity that it would make sense.î
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A timeline hasn't been set but McCormick said the exchange is reviewing a bulletin board that would allow limit orders in 30 to 50 stock options that are ìliquid enough in the underlying equity that it would make sense.î
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