#SECPushesFor24HourTrading

SEC Considers 24-Hour Stock Trading as Traditional Markets Take Cues from Crypto

Trading on the U.S. Stock market might not be a 9-to-5 operation going forward. On September 17th, the U.S.

Securities and Exchange Commission (SEC) will host a public roundtable to debate a future of 24-hour trading in U.S.

Equity markets.

The commission will examine a range of issues at the roundtable, such as overnight trading operations, market resilience, liquidity, investor protection, and the technological challenges. They are considering ways for markets to remain stable and offer fair price discovery when functioning 24 hours a day, seven days a week.

SEC Chairman Paul Atkins said the U.S. Is moving toward “a new day-and night-in the equity markets,” to align with global investor needs for 24/7 access to information impacting assets. Given that significant global news is frequently published throughout the day, he suggested that financial markets should too.

There is already a surge in industry support for more hours. The SEC has already given approval to 24X Exchange to initiate 23-hour trading, while other large exchanges such as the NYSE, Nasdaq, and Cboe have proposed extending hours as well, enabling investors to access their equity holdings for a longer time each day.

Many believe that cryptocurrency has inspired the momentum to extend the hours as cryptocurrency markets, in contrast to traditional exchanges, function at all times.

An extension of traditional exchange hours could help international investors. Furthermore, it could shorten the time difference between when crucial global news is released and when markets open the next day. However, important questions remain regarding liquidity, volatilities, costs and who will benefit the most from a continuous market opening.

The debate about 24-hour markets has just started but shows convergence between the crypto market and more conventional markets.

What is your take on whether traditional equity markets are bound to expand trading hours into a 24-hour framework as seen globally? Do they need additional regulation in terms of expanded time?

‍#Crypto #GateSquare