NYSE gauges interest in 24/7 stock trading like crypto: Report

According to reports, the New York Stock Exchange (NYSE) is considering introducing 24-hour trading for stocks, modeled after the continuous operation of cryptocurrency markets.

The Financial Times reported on April 22 that NYSE’s data analysis team sought input from market participants through a survey. They wanted to gauge the market’s opinion on the possibility of 24/7 or around-the-clock weekday trading. If such a change were to be implemented, what protective measures should be put in place to safeguard traders against unexpected overnight price fluctuations?

The New York Stock Exchange (NYSE), together with the Nasdaq and Chicago Board Options Exchange, are open for trading from 9:30 am to 4:00 pm Eastern Time, five days a week, on Mondays through Fridays.

In the US, various assets including cryptocurrencies, U.S. Treasuries, foreign currencies, and leading stock index futures can currently be traded around the clock. Certain brokers provide this service.

Robinhood and Interactive Brokers serve as platforms that grant 24-hour weekday access to the US stock market for individuals abroad. They accomplish this by providing a “dark pool” trading environment, which enables these investors to buy and sell shares during their respective business hours.

Recently, there were news articles stating that Robinhood temporarily suspended its non-stop trading feature due to heightened conflict between Israel and Iran. This development left investors pondering the long-term viability of continuous trading services.

In the constant trading environment of the cryptocurrency industry, effectively managing liquidity has been a challenging feat for cryptocurrency platforms.

Traders in the crypto market frequently encounter a discrepancy between the business hours of conventional financial institutions and their own demands, according to cryptocurrency research firm Kaiko. Volatile markets can keep these traders up at night.

Although the results of NYSE’s poll are still unavailable, Tom Hearden, a senior trader at Skylands Capital and with a following of 19,300 on X, conducted his own poll asking this group if they favored NYSE switching to around-the-clock trading. Over 70% of the 1,459 participants answered negatively.

NYSE gauges interest in 24/7 stock trading like crypto: Report

The New York Stock Exchange conducts a survey at the same time that 24X National Exchange is applying for SEC permission to initiate the first continuous stock market in the United States.

According to FT’s sources, the SEC has several “months” left to consider the proposed rule modification, while other parties concerned have begun addressing relevant matters like cost allocation and the function of clearinghouses.

James Angel, a finance professor at Georgetown University, expressed to the Financial Times that he’s unsure of the volume they will handle during the night hours. However, it’s not the Securities and Exchange Commission’s role to determine if it’s profitable or not.

“I’m in favour of letting the market decide. If it succeeds, we’re all better off and if it doesn’t, well, the exchange’s investors lost.”

The company is making a second try for SEC approval, having previously withdrawn their proposal in March 2023 due to operational and technical concerns.

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2024-04-23 03:19