00:00Real quick, before our special guest of the day, we did have some news in Robinhood trading
00:05higher by about 2.3%.
00:07This of course comes after Robinhood's event that they held, the Hood Summit last week.
00:14And Robinhood is now offering election contracts, so you can bet essentially on the US election
00:20on Robinhood.
00:21Kind of strange, I mean, how long, I mean, it's now, a week from tomorrow is the election.
00:26They waited until now to launch it.
00:28But Interactive Brokers had previously launched the election contract.
00:32So Robinhood, Interactive Brokers, now trying to compete with the Polymarkets, the Predictits
00:38of the world for this market of election betting, which there seems to be a decent amount of
00:44appetite out there for it.
00:45So Robinhood, which also reports this week on Wednesday after the close, is trading higher
00:51slightly this morning, again, 64 cents here, about 2.3%.
00:55Okay, so something to think about Robinhood, and there was a sneaky headline on Friday
01:00that not many people are paying attention to, but the headline, I don't know what this
01:04is coming from, Wall Street Journal or who is reporting this, but rumored yet, nothing
01:08officially announced, but the NYSE planning to expand their after-hours trading.
01:14And it's a no-brainer for the exchanges.
01:17I mean, you see what's happening here, is Robinhood and IB are doing really well with
01:22their 8 p.m. to 4 a.m. overnight trading session.
01:26There's a lot of people trading it, I'm trading it too, you know, I'm going in there even
01:30Sunday night, I'm going in there and like getting opportunities there.
01:33So it's, you know, just more opportunity to trade.
01:36You're bored, you're sitting, it's opportunity at night.
01:39So they're planning on extending NYSE ARCA, which is their main after-hours exchange,
01:45to 22 hours now daily.
01:47So they're planning on taking it from 8 p.m. close to 11.30 p.m. close, and then reopening
01:53not at 4 a.m., but reopening at 1.30 a.m.
01:57So they're trying to capture some of that, obviously, volume from Robinhood and Interactive
02:03Brokers back on the exchange.
02:05So this is, and it'll be more liquid, obviously, if it's running on ARCA and stuff.
02:09So that's actually a concern for me for Robinhood.
02:12I'm very, very surprised that, you know, because I think Robinhood is really benefiting
02:16from this.
02:17I'm very surprised, you know, that the stock wouldn't be trading down on that.
02:20Maybe it's this other headline you're talking about, but I'd be cautious trading Robinhood
02:24here because if there's some truth to this headline, which there probably is, the source
02:28was CNBC, there probably is some truth here.
02:32I think that's not good news for Robinhood because I think they get quite a bit of volume
02:35in that overnight session, they call it.
02:39What has taken the New York Stock Exchange so long?
02:43To do this?
02:44Yeah.
02:45Well, I think the main concern always, what I used to say, was to go to 24-hour trading
02:49was how do you handle the dividend stuff?
02:51Like something going ex-dividend.
02:52Like right at midnight, all of a sudden, it's boom, it has to adjust pricing because we
02:56close and then we reopen.
02:57So they're still going to do that.
02:59They're going to close at 11.30 so they can actually get a reopening.
03:02The way Robinhood has it, they actually like, and the way the market makers do, at least
03:06on IB, is they close the stocks on the regular exchange and when they reopen like a minute
03:11later at the 8 o'clock open, they're already adjusted and they're marked the next day.
03:15So that's how they're handling it.
03:17But it'll have to be a complete adjustment again because you can't have, oh, on this
03:21exchange, I'm buying at 8.30, it's ex-dividend, but on this exchange, it's good till 11 o'clock.
03:26So the NYSE is probably doing it the right way.
03:28Close at 11.30.
03:29We have an official close.
03:30So everything is for the ex-dividend dates and for corporate actions are all dated this
03:35day.
03:37They could have reopened probably at 12.30, but then maybe they've given themselves a
03:40little bit of a break to 1.30.
03:41So that's the rumor.
03:43I think it probably happens.
03:44It'd be crazy for the exchanges not to do this.
03:47And I do think that takes some volume away from Robinhood.
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