Good morning David!! Looks like Schwab is hopping on the Band wagon.
Schwab to Launch After Hours Trading for Customers
PR Newswire, Monday, October 04, 1999 at 07:40
Company Will Offer Separate Trading Session From 4:30 p.m. to 7:00 p.m. EST
SAN FRANCISCO, Oct. 4 /PRNewswire/ -- Charles Schwab & Company, Inc., one
of the nation's largest financial services firms, today announced that retail
and investment advisor customers will soon be able to trade most Nasdaq and
select listed stocks during a separate After Hours Trading Session. The
session is planned to run from 4:30 p.m. to 7:00 p.m. EST. Monday through
Friday.
Schwab retail customers who wish to use the After Hours Trading Session
will be able to place limit orders via Schwab's Web site (www.schwab.com) or
by telephoning 800-435-4000 and asking for an After Hours Trading
representative. Investment Advisors who work with Schwab Institutional will
be able to place orders in the After Hours Trading Session by contacting their
Trading Teams. After Hours Trading is expected to be available electronically
for investment advisors through Schwab Institutional's Web site in November.
Commissions for the After Hours Trading Session will be based on Schwab's
standard fee and commission schedule.
"This new service continues our 25-year tradition of empowering Schwab
customers with innovative ways to invest," said Charles R. Schwab, Chairman
and Co-CEO, The Charles Schwab Corporation.
As the investing landscape has evolved, Schwab has been a catalyst of
change. The company's innovations include:
-- 24-hour, 7-day-a-week order entry and quote service
-- A no load mutual fund service: Mutual Fund OneSource(R)
-- A multi-dimensional offering of the Internet, over 310 branch offices,
voice recognition and touch-tone telephone technologies, multilingual and
international technologies, and direct access to its professionals
around-the-clock.
"Schwab has a significant presence on the exchanges in terms of share
volume," said Chairman Schwab. "A large portion of our customer base is on the
West Coast. For years, they've watched the markets close during lunchtime.
Now we're giving them an opportunity to trade throughout the business day."
Currently, trading after hours is handled by electronic communications
networks (ECNs) that simply match subscribers' buy and sell limit orders.
Trading in an after hours session can involve limited liquidity, volatile
prices and wider spreads. Late breaking company news may also cause a gap
between the closing price of an after hours trading session and the opening
price at the next morning session. In recent years, professional investors
have been able to trade after hours, but until now the service hasn't been
available to the general public.
"We felt it was important to address some of the risks of after hours
trading before we launched our own session," said Schwab. "To that end, we
supported the development of an after hours network of firms to foster an
environment of greater liquidity for our customers."
A key element of Schwab's After Hours Trading service will be its alliance
with Fidelity Investments; Spear, Leeds & Kellogg; and Donaldson, Lufkin and
Jenrette to form a new ECN based on Spear, Leeds' REDIBook ECN. As a
participant in an after hours trading network, REDIBook may also offer access
to prices available on other participating ECNs.
"ECNs require large numbers of subscribers in order to provide and attract
liquidity," said Lon Gorman, Vice Chairman, The Charles Schwab Corporation,
and President, Schwab Capital Markets & Trading Group. "For Schwab's
customers, our alliance, which will combine order flow from four of the
biggest names on Wall Street, offers tremendous potential for liquidity.
REDIBook's membership in an after hours trading network enhances this
potential even further."
This is the first phase of Schwab's After Hours Trading service. As the
established exchanges begin to implement their own after hours trading
systems, Schwab's after hours session will evolve to include the potential for
customers to have as much choice in their trading decisions as possible. For
example, Schwab expects to increase the type and number of securities
available in the after hours trading session.
According to Susanne D. Lyons, President, Retail Client Services, customer
education is an important part of Schwab's After Hours Trading initiative.
"The NYSE and Nasdaq are not participating fully in after hours trading,
so the initial environment could be significantly different from that of
standard market hours," says Lyons. "It's not for everyone. Helping our
customers understand the differences, and educating them on how to trade
safely and responsibly after market hours, is a top priority."
This week, the company is mailing an account statement insert to every
Schwab retail customer and will add educational materials to its website on
trading after hours. Informational brochures detailing this new service will
also be available upon request. Investment Advisors who work with Schwab
Institutional can obtain more information about After Hours Trading by
contacting their Trading Teams or referring to Schwab Institutional's Web
site.
Access to services may be limited or unavailable during periods of peak
demand, market volatility, systems upgrade, maintenance, or other reasons.
The Charles Schwab Corporation (NYSE:SCH), through its principal
operating subsidiary, Charles Schwab & Co., Inc. (member SIPC/NYSE), is one of
the nation's largest financial services firms, serving 6.3 million active
investor accounts with $595 billion in customer assets through 312 branches,
four regional customer telephone service centers and automated telephonic and
online channels. The Charles Schwab Web Site(TM) can be reached at
www.schwab.com.
Schwab Institutional is a division of Charles Schwab & Co., Inc. and
provides back office and other services to independent investment managers.
Charles Schwab & Co., Inc., ("Schwab"), a registered broker/dealer, provides
investment brokerage and custody services. Since its inception in 1987, Schwab
Institutional has been the industry's leading provider of operational support,
trading and technology solutions for independent, fee-based investment
advisors. The 5,600 investment professionals it serves manage more than 30% of
Schwab's customer assets and more than 10% of its customer accounts. The
investment advisors doing business through Schwab Institutional are
independent, fee-compensated professionals, providing ongoing investment
management for affluent individuals, families and institutions.
SOURCE Charles Schwab & Co., Inc.
-0- 10/04/1999
/CONTACT: Marta von Loewenfeldt of Charles Schwab & Company, Inc.,
212-804-3668, or marta.vonloewenfeldt@schwab.com/
/Company News On-Call: prnewswire.com or fax,
800-758-5804, ext. 154881/
/Web site: schwab.com |
