The all-electronic Archipelago Exchange is to begin trading US listed and OTC stocks from 4am Eastern Time, in an effort to win more business from European investors.
The 4am opening is expected to be of particular interest to European investors trading ADRs and ETFs.
Mike Cormack, president of the Archipelago Exchange, says: "Since ArcaEx already had an earlier opening time than other US exchanges and a process for handling orders before 9:30 am ET, extending the early session by four hours essentially required relatively minor systems changes to accommodate this expanded window for the trading of US equities."
ArcaEx will disseminate quote and trading information via the consolidated tape. The Pacific Exchange will provide regulatory oversight during the early open period.
Both Nasdaq and Nyse have explored the possibility of stimulating trans-Atlantic competition via earlier opening hours, but have yet to make any firm moves.