NYSE Explores Possibility of 24-Hour Stock Market Trading
Summary:
The New York Stock Exchange (NYSE) is exploring the idea of 24-hour stock trading, similar to cryptocurrency markets, and has conducted a survey to assess market sentiment. Current trading times are from 9:30 am to 4:00 pm on weekdays. Meanwhile, startup 24X National Exchange is seeking SEC approval to launch the first 24-hour exchange in the country. The proposal has met with mixed responses, with 70% of followers of a trader's poll disagreeing with the idea.
The New York Stock Exchange (NYSE) is sizing up interest towards the possibility of round-the-clock trading, mirroring the 24-hour operations of cryptocurrency markets. The exchange's data analysts recently conducted a survey to measure market sentiment for full-time trading and to discuss safeguards against unpredictable overnight price movements, the Financial Times revealed in an April 22 report. At present, the NYSE, the Nasdaq, and the Chicago Board Options Exchange all operate from 9:30 am to 4:00 pm Eastern Time from Monday to Friday. In contrast, cryptocurrencies, US Treasurys, foreign exchange, and top stock index futures can already be traded 24 hours a day in the US. Notably, Robinhood and Interactive Brokers facilitate continuous weekday trading of US stocks via a "dark pool" venue for international retail investors. However, Robinhood recently paused its 24-hour trading services due to geopolitical tensions between Israel and Iran, spurring worries about continuous trading's viability. Many in the cryptocurrency trading sector have experienced the challenges posed by managing liquidity in a 24-hour market. Cryptocurrency research group Kaiko pointed out a mismatch between traditional financial institutions' working hours and large crypto traders' demands, causing sleepless nights when the markets are very volatile. With the NYSE's survey results still pending, a poll by Skylands Capital senior trader Tom Hearden showed 70% of his 1,459 followers opposing 24/7 trading. At the same time, startup company 24X National Exchange seeks approval from the Securities and Exchange Commission (SEC) to introduce the first 24-hour exchange in the US. The SEC's review of the proposed rule change may take months, and industry players have begun considering the implications, including cost-sharing and the role of clearinghouses. Finance professor James Angel from Georgetown University opined that the market should determine its success. If the proposal fails, it would mean a loss for the exchange's investors. This proposal follows a failed attempt in March 2023, which was rescinded due to technical and operational issues.
Published At
4/23/2024 3:02:45 AM
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