New Platform Launches Pre-Market Options Trading
Longbridge Securities has launched what it calls the world's first platform for pre-market U.S. options trading. The move is designed to give global investors an edge by allowing them to trade and react to news outside of standard market hours, a significant shift for active traders and finance professionals.
Traditionally, pre-market trading has been limited to stocks and index futures, with U.S. options markets only operating during the standard 9:30 a.m. to 4:00 p.m. ET hours. This restriction meant investors couldn't use options to hedge or speculate on company-specific news, like earnings reports, that were released outside of regular market hours. The primary barriers to offering pre-market options have been lower liquidity and challenges with accurate pricing. With fewer buyers and sellers active, the difference between the bid and ask price often widens, increasing risk for traders. This new platform claims to have overcome these hurdles. Longbridge Securities, the Singapore-based brokerage behind this launch, was founded in March 2019. The firm is regulated by the Monetary Authority of Singapore (MAS) and has secured over $150 million in strategic investments. Extended-hours trading, which includes pre-market and after-hours sessions, accounts for a significant portion of market activity, though it involves higher volatility. Most pre-market trading occurs between 8:00 a.m. and the 9:30 a.m. ET market open, allowing investors to react to overnight news from global markets.
