BTCS Inc (BTCS)

[fourcloze]

2009 OTC "After hour trading" explanation: Outdated? YES OR NO?? Someone must know the REAL answer???


OTC Stock can trade after hours

This is a pretty long winded explaination but unfortunately it is a complex issue.

After doing some research here is what I found out. An OTC stock can trade after hours because this is a non-exchange traded stock so guess what. There are no hours. The hours are set by the exchanges and by the SEC. The brokerage may prohibit OTC trades after hours. So end of discussion if that is true. But all brokerages set their own rules so if they allow it the following can go on.

This means that traders and/or market makers can trade as long as they want in this stock. These can be the same guy but they could be two different people.

The two issues/questions that come up.

1) Does the traders platform support OTC trades? This one is easy if their platform doesn't support it they would have to be on the phone to the market maker and for the few dollars they would make I am betting they are headed home to get a drink.

By OTC trades I mean electronic input of the order and electronic confirmation that the order has been filled. Whether it is a sell or a buy. No electronic order matching is available.

2) Is a market maker willing to manually trade this stock after hours? (Not a big money maker for a market maker so the guy must be there for something else unless we have a high volume day.) It could be the market maker is the trader themselves so this could work with one person. But it does take one market maker to manually match the orders otherwise no trading happening here.

Usually after hours trading is all performed electronically. In our case since CPRK does not have electronic order matching... because CPRK is not traded on an exchange somebody has to hang around to make these trades happen manually.

The SEC doesn't normally care when a stock trades. (There are blackout times for insiders and other times but that is another story and not really germane to this discussion.)

I wish that everybody would just call/email Charles and push him to get this stock on the OTCBB so it could be electronically traded like any normal stock Then our L2 would function correctly and we could see the market makers at work.