Blue Ocean Tech sees no need for closing bell with overnight-trading platform

By Steve Gelsi

Nasdaq veteran heads up fintech that's growing its off-hours trading platform for Robinhood, Webull, Interactive Brokers and others

Consumers can shop online, order meals or book transportation at any time. That, according to Blue Ocean Technologies Inc. Chief Executive Brian Hyndman, should also be true for U.S.-listed stocks and ETFs.

It's also the business of Blue Ocean, which runs a platform for trading outside of after-hours, with subscribers including online brokers such as Robinhood Markets Inc. (HOOD), Interactive Brokers Group Inc. (BKR), Webull Financial LLC and the Tokyo Stock Exchange.

Charles Schwab Corp. (SCHW) and E-Trade are market data subscribers to Blue Ocean to provide their customers with overnight-trading prices.

"We live in a world where people want to trade when they want to trade," Hyndman told MarketWatch.

The company runs a regulated alternative equities platform called Blue Ocean Alternative Trading System (BOATS), with bid and ask prices for stocks posted at 8 p.m. Eastern time Sunday through 4 a.m. Eastern Friday morning. The trading system is closed over the weekend until Sunday night.

Blue Ocean has been trading 5,000 listings, with an average daily volume of 40 million, via its 45 subscribers and thousands of stock traders. Volume leaders include Nvidia Corp. (NVDA), Tesla Inc. (TSLA) and Invesco QQQ Trust Series I QQQ.

"I don't see the need" for stock exchanges to bother ringing opening or closing bells, Hyndman said, since stocks are so often bought and sold outside the daytime trading hours on the NYSE and the Nasdaq.

Outside of aftermarket trading of Nasdaq and NYSE stocks from 4 p.m. to 8 p.m. Eastern, and premarket trades from 4 a.m. to 9:30 a.m. Eastern, it had been impossible to buy or sell securities from the two main U.S. bourses until Blue Ocean Tech was launched in 2021.

Hyndman joined Nasdaq Inc. (NDAQ) in 2004 as part of the company's $190 million acquisition of Brut Trading under former Nasdaq Chief Executive Bob Greifeld. He worked as senior vice president of Nasdaq for about 12 years, until the end of 2015.

Hyndman was president of Brut Trading.

Blue Ocean employs 14 people, the company told MarketWatch. The company is cash flow positive, with backing from the Tokyo Stock Exchange as well as Urbana Corp. (UBAAF)

Most of its volume is from people in Asia who buy and sell Nasdaq and NYSE stocks during their regular working days, Hyndman said.

South Korea, Japan, Hong Kong, Singapore, Australia and the Middle East are all home to traders on Blue Ocean's platform.

The busiest time of the week is Sunday night when people in Asia can start trading U.S. stocks after the weekend break.

With technology upgrades to its platform under way, Blue Ocean plans to handle more trades, with potential demand from Asia Pacific of roughly 2 billion shares per night.

It has no plans to go public or to sell itself at the current time, but it sees plenty of growth ahead of the company.

"We're in the early innings," Hyndman said.

-Steve Gelsi

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07-01-24 1212ET

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