Charles Schwab, Hong Kong, Ltd.
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Extended Hours Stocks Agreement and Disclosure

Welcome to Charles Schwab & Co., Inc.'s Extended Hours session. By clicking "I agree" below, you agree to the following terms and conditions. Please take your time to review this important information. We want you to understand the special characteristics and potential risks of extended hours trading before you enter the Extended Hours session. This agreement and disclosure will always be available for your review under the "Agreements" link that appears on one or more pages in the Customer Center.

Extended Hours session is independent of standard session

The Extended Hours session is completely independent of the standard market hours session, with separate trading screens and separate quotations. You will only be able to place an order in the Extended Hours session during a restricted time period. Orders intended for the standard market hours session may be entered at anytime. While the Extended Hours session is taking place, you can either:

  1. Place an order in the Extended Hours session using the appropriate extended hours order entry page, or
  2. Place an order for next day execution during the standard market hours session using the appropriate standard market hours session order entry page.

An order entered for execution during standard market hours will not be entered in the Extended Hours session. Likewise, an order entered for execution in the Extended Hours session will not be entered in the standard market hours session. It is your responsibility to understand the difference between placing an extended hours order and a standard market hours order.

Relationship to Electronic Communications Network ("ECN")

Schwab and its affiliate, Schwab Capital Markets L.P. (SCM) (member SIPC/FINRA), display and execute extended hours orders through NYSE Arca. In addition, SCM may trade, but is not obligated to trade, for its own account in the extended hours session, including through NYSE Arca. Schwab has a small ownership interest in NYSE Arca. Through participation in an extended hours trading network, NYSE Arca may offer access to orders or prices available on other participating ECNs.

Extended hours quotations and prices

Extended hours quotations are different from quotations for standard market hours, and some elements of the quote may be different. Extended hours quotations reflect the best bid (buy) and ask (sell) orders currently available through NYSE Arca. At times there may be no order entered on NYSE Arca, so there will be no currently available quote. Even if a quote is available, it may represent only one customer ready to buy or sell a limited number of shares at that price. The quotations to buy and sell may differ significantly from standard market hours closing prices. You should review closing prices and extended hours quotations before placing an extended hours order.

Lack of consolidation of extended hours markets and quotations

The bid and the ask (buy and sell) quotations among all extended hours markets or ECNs may not be consolidated into a single quotation reflecting a best available extended hours price. Similarly, the "last sale" reports you receive may not reflect the prices of the most recent trades on all of the various extended hours markets. Because extended hours markets largely function independently, quotes and prices provided during extended hours trading may not reflect the best prices available for a given security across all extended hours markets. Quotes and last sale prices may vary widely from one extended hours market to another, and customers may find better or worse prices through extended hours markets other than NYSE Arca and broker-dealers other than Schwab.


The order book represents the most recent order information available to Schwab from NYSE Arca during the Extended Hours session. Only orders submitted to NYSE Arca are presented and it is not a Schwab order book. The order book does not necessarily represent the best bid, best offer, or last sale price on Nasdaq or other markets, exchanges, or ECNs and is for supplemental information only. Please realize that the timing and accuracy of this order book is not guaranteed and you should refresh the quote information for the security prior to placing any order.

Liquidity and price fluctuations

Liquidity refers to the ability to buy and sell securities at quoted or competitive prices. Generally, the more orders available in a market, the more liquid the market. Due to limited trading activity in the extended hours session and the lack of consolidation among extended hours markets, the liquidity of the extended hours session may be significantly less than during standard market hours. Consequently, securities prices may experience greater fluctuations and wider spreads between bid and offer prices than during standard market hours.

Risk of Changing Prices

The prices of securities in extended hours trading may not reflect the prices either at the end of standard market hours, or upon the next opening of standard market hours. As a result, you may receive a price in extended hours trading that is different (including one that is not as good) from the price you would receive during standard market hours.

Extended hours orders

You may only enter certain types of limit orders, for particular securities, up to a certain specified number of shares. Market orders are not accepted. A limit order includes the price and number of shares for which you are willing to buy or sell. With a limit order, you will not buy for more or sell for less than the price you entered. However, your limit order will be executed only if it matches another order available through NYSE Arca, and the best priced orders in the system (the quotations) are constantly subject to change. In addition, there may be orders ahead of your order at the same price. Orders that have not been executed or canceled prior to the end of the extended hours session will be removed at the end of the session and will not carry over to the next day's standard market hours or extended hours sessions.

Clearly Erroneous Policy

Schwab is subject to the NYSE Arca "Clearly Erroneous Policy." A clearly erroneous trade occurs when someone has entered an order with an obvious error in any term, such as security identification, price or number of shares. Upon request, NYSE Arca may review a transaction to determine if it was clearly erroneous and may reverse or "break" such a trade. You acknowledge that if you have benefited from an erroneous transaction, Schwab, under NYSE Arca policy, may break the trade. This could have the effect of placing you in the position you were in before the transaction. If you wish to have an Extended Hours transaction reviewed for a clear error, please contact a Schwab representative immediately. In general, you have only 30 minutes to file your complaint and, in some cases, the time limit is 15 minutes.

The participation of professional traders

Many extended hours traders are professionals who may have access to more current information than individual investors.

Impact of news

News stories released after the close of standard market hours may create wide price fluctuations in extended hours trading. You should check appropriate news sources before placing an order. Schwab provides customers access to certain news and information through its Web site. These news sources may not include all currently available information relating to all securities and issuers.

Appropriateness of extended hours trading

Schwab does not warrant or recommend that extended hours trading is appropriate for you. As noted above, extended hours trading involves special risks, and it may not be appropriate for all investors. Investment decisions you make involving extended hours trading are your responsibility.

Evolution of extended hours trading

Schwab's extended hours session will continue to evolve along with the rest of the securities industry. Schwab reserves the right to change its Extended Hours session. You will need to keep up to date on these changes and review how they might affect your own investment decisions.

Additional important information

Before you place any orders, you should review the additional important information by viewing details on the Extended Hours Trading page.

Electronic Services Agreement and Use Agreement

Your use of the Extended Hours session is governed by your existing account agreements with Schwab, including the "Electronic Services Agreement." The information, news, research, quotations, and other content available to you during the Extended Hours session is also subject to the "Use Agreement." As a Schwab customer, you have previously consented to these agreements, which are available for your review under the Agreements link that appears on one or more pages in the Customer Center.

Changes to this Agreement and Disclosure

This agreement and disclosure is subject to change without prior notice. Your continued use of the Extended Hours session will indicate your agreement to any such changes.

Multiple account holders; power of attorney

If you are a joint or multiple account holder, or if you exercise power of attorney over this account, you should review this agreement and disclosure and the potential risks of extended hours trading with all account holders. If you indicate your agreement below, you represent that all account holders understand and agree with the terms and conditions of the extended hours session and that they consent to the placement of orders in the extended hours session.

Signature and acknowledgement

By clicking "I agree," you acknowledge that you have read and understood this disclosure and the potential risks of extended hours trading. You also acknowledge that you have read, understood, and will abide by the terms and conditions of the Extended Hours session. We will record your agreement, and you may print this document for your records.