More Trading Hours, Different Risks: CIRO helps investors understand extended hours trading

New investor education resource explains the opportunities and risks of trading outside regular market hours

TORONTO, Oct. 8, 2026 /CNW/ — The Canadian Investment Regulatory Organization (CIRO) is encouraging investors to learn about the risks and considerations associated with extended hours trading before placing trades outside regular market hours.

Equity marketplaces have regular trading hours of 9:30 a.m. to 4 p.m. when all marketplaces are open for trading. Extended hours trading allows investors additional time to buy and sell securities by extending the time that a particular marketplace is open. While these additional trading sessions can offer flexibility and provide opportunities to react to market developments, they may also involve different market conditions than those experienced during regular trading hours. 

“Having the ability to trade outside regular trading hours may provide additional investor flexibility and sound appealing, but the same factors that create opportunity can also create risk,” said Kevin McCoy, Senior Vice-President, Market Regulation, CIRO. “Before placing a trade outside of regular trading hours, investors should understand how trading conditions can differ and how those differences may affect the price of securities they buy or sell.”

Compared with regular market hours, extended hours trading may involve:

• Lower trading volume and reduced liquidity
• Greater price volatility
• Wider bid-ask spreads
• Trade prices that differ significantly from those available during regular market hours
• Increased market reactions to earnings announcements, economic reports, or other breaking news

CIRO also encourages investors to familiarize themselves with different order types before trading during extended hours sessions. In periods of lower liquidity and wider spreads, certain order types may provide investors with greater control over the price at which their trades are executed.

As part of its investor education mandate, CIRO has published new educational content to help Canadians better understand the potential benefits and risks of extended hours trading and make informed investment decisions. CIRO has also issued a guidance note clarifying that Dealers are equally obliged to comply with all applicable requirements, including CIRO rules, marketplace rules and applicable securities legislation during extending hours trading, as they do during core trading hours.

Investors should also remember that extended hours trading is not available through all investment dealers and may not be suitable for everyone. CIRO dealers are required to provide disclosure to clients about the risks of extended hours trading. Before participating, investors should understand how orders are handled, what risks apply, and whether this type of trading aligns with their investment objectives and risk tolerance.

Learn more about extended hours trading.

For Dealer Members, read the Guidance Note.

About CIRO

The Canadian Investment Regulatory Organization (CIRO) is the pan-Canadian self-regulatory organization that oversees all investment dealers, mutual fund dealers and trading activity on Canada’s debt and equity marketplaces. CIRO is committed to the protection of investors, providing efficient and consistent regulation, and building Canadians’ trust in financial regulation and the people managing their investments. For more information, visit www.ciro.ca.

SOURCE Canadian Investment Regulatory Organization (CIRO)