After Hours

GENERAL AFTER-HOURS TRADING DISCLOSURES

From MyTrack Help

After-hours investing involves unique risks that investors should fully understand before placing an order after hours. These risks include, but are not limited to, greater price volatility, less liquidity, and wider bid/ask spreads than during regular market hours. Prior to participating in this unique after-hours session, you should review and be aware of the various risks and requirements involved with after-hours trading. For your convenience, below is a list of issues that we believe should be carefully considered before engaging in after hours trading.

After-Hours Trading Session: Currently, orders may placed until 8:00 PM EST. Any day orders you enter after 4:05 PM EST will be routed to the Island ECN (other markets will be added as they come on line). Any unexecuted day order will be cancelled at 8 PM. A day order entered let's say at 5 pm will not be in effect for the next day. It will be valid for the same day and then cancelled at 8 PM if not executed. If you want to enter an order after 4:05 for the next day, enter it as a GTC order. Any order entered in the after-market that is not eligible to be routed to Island (or another ECN) will be held in our database until 9:05 AM EST the next market day. At 9:05 AM, the order will then be routed to a marketplace.

Limit Orders: To minimize the potential effects of lower liquidity and greater volatility, only limit orders may be placed after hours and are subject to the normal limit order rules.   Again, an order entered as GTC will be routed to a marketplace at 9:05 AM EST the next business day.

Lower Liquidity: Liquidity generally refers to the number of buyers and sellers or quotations in any given security. In the after-hour marketplace there may be a lack of liquidity in certain securities that may affect how orders are executed. Orders placed after hours are routed to a specific trading system, and such orders will be executed only if such order is matched against another investor or market professional to buy or sell on the other side of the transaction for that particular price.

Higher Volatility: Volatility refers to the changes in price that securities undergo when trading. Because of reduced liquidity in the after-hours market which produces higher volatility, there may be greater price swings in securities traded in the after-hours session.

Price of Execution: As mentioned, orders placed after hours are routed to a specific electronic trading system. That system may not have the best prices for a securities purchase or sale and cannot guarantee that its marketplace, at any given moment, represents the best price available for a particular security. Customers may actually pay less, equal, or more for securities traded on that system than what was executed on a similar order on another after-hours electronic trading system. Also, a limit order may be executed at a price away from the current market price.

For example, a customer enters an order at 11:00 PM EST to Buy 100 XYZ @ 62 and receives a message that the order will be routed at 9:05 AM the next market day. At 9:05 AM, the market for XYZ is at 59. The customer may be executed at 62 by a seller who sells its shares to the customer at 62.

Risk of Timing Of Order Entry: Orders entered by other investors may beat your order to the electronic trading system's order book, and thus remove from the order book an order you were trying to match. This may prevent your order from being executed, in whole or in part, or from being executed at the price you wanted. In addition, orders entered earlier into the electronic trading system at the same price level of your order will have a higher priority than your order. This means that, if there is an execution at that price level, those earlier orders will be executed before your order, unless you improve the price of your order to move you up in priority.

Quotations Subject to Change: Orders posted on the electronic trading system may be changed before your order has a chance to be matched against the posted orders. This means that there is no guarantee that there will be orders at any given price.

Communications Delays: The potential risk of delay that can be caused by problems related to communications between customers and Track Data Securities and Track Data Securities and the after-hour marketplace may cause delays in, or prevent execution of your order.

Trading Halts: If securities have been halted during the regular trading session, such trading halts will continue to be in effect during the after-hours trading session. No trading halts will be initiated by the after-hour trading system itself during the after-hours trading session.

Risks of Cancellation and/or Change Requests: Cancellation and/or change requests may not be accepted if the order you want to cancel/change is executed first: You may change or cancel your order any time before it is executed.