Curb Trading Explained: Origins, Mechanisms, and 2025 Insights

Suzanne is a content marketer, writer, and fact-checker with a Bachelor of Science in Finance from Bridgewater State University. She specializes in crafting strategic content for financial topics.

What Is Curb Trading?

Curb trading refers to the buying and selling of securities conducted outside the regular trading hours or beyond official stock exchanges like the New York Stock Exchange (NYSE) and NASDAQ. Historically, it involved brokers trading stocks literally on the street curbs of financial districts, a practice dating back to the early days before licensed exchanges existed.

This term, sometimes spelled "kerb trading," echoes the open-outcry methods used before formal exchanges centralized trading activities.

Key Highlights

• Curb trading involves transactions executed outside normal market hours.
• Its roots lie with curbstone brokers who traded on street corners in financial hubs such as Manhattan.
• In modern finance, curb trading typically refers to after-hours trading sessions.

How Does Curb Trading Work?

Initially, stocks unsuitable for NYSE listing were traded on street curbs, leading to the creation of the American Stock Exchange (AMEX), once known as the "Curb Exchange" until its formal establishment in 1921. AMEX later pioneered index options trading, expanding market opportunities.

Today, curb trading broadly encompasses any trades conducted outside organized exchanges—whether physical, electronic, centralized, or decentralized. With the rise of digital communication and electronic networks, investors can trade nearly around the clock via dark pools and over-the-counter (OTC) markets.

After-hours trading exemplifies modern curb trading, allowing investors to transact securities beyond the standard 9:30 a.m. to 4:00 p.m. Eastern Time window. These sessions typically run until 8:00 p.m., facilitated by electronic communication networks (ECNs) that match buyers and sellers without a traditional exchange.

However, trading volume during after-hours is usually lower due to fewer active participants, which can affect liquidity and price volatility.

Historical Origins of Curb Trading

Curb trading originated in the 1800s and early 1900s when curbstone brokers operated on street corners in financial districts like Manhattan’s Broad Street. These brokers often traded speculative stocks, especially in small-cap industrial companies benefiting from the industrial revolution.

Pro Tip

Curb trading is often associated with pink sheet stocks. As exchanges transitioned to electronic platforms, traditional curb trading diminished but evolved into modern after-hours markets.

The first licensed stock exchange was established in London in 1773, preceding the NYSE by 19 years. Unlike London’s regulated market, the NYSE quickly became the dominant U.S. exchange after its informal beginnings under a buttonwood tree on Wall Street.

Its prime location in the heart of American commerce and finance, coupled with strict listing requirements and fee structures, helped the NYSE become a powerful and wealthy institution.

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