NYSE Considers 24-Hour Stock Trading, Surveying Traders’ Sentiment
The New York Stock Exchange (NYSE) is considering the possibility of implementing 24-hour stock trading, similar to how cryptocurrency markets operate. In a recent survey conducted by NYSE’s data analytics team, market participants were asked whether they would support around-the-clock trading and what systems should be in place to protect traders from overnight price swings.
Currently, NYSE, along with the Nasdaq and Chicago Board Options Exchange, operate Monday to Friday between 9:30 am to 4:00 pm Eastern Time. However, assets such as cryptocurrencies, United States Treasurys, foreign exchange, and leading stock index futures can already be traded 24/7 in the United States.
Platforms like Robinhood and Interactive Brokers offer 24-hour weekday access to U.S. stocks through a “dark pool” trading venue, allowing international retail investors to trade shares during their daytime hours. However, concerns have been raised about the sustainability of around-the-clock trading, especially during times of increased geopolitical tensions.
Managing liquidity in a 24/7 trading environment has proven to be a challenge for trading platforms in the cryptocurrency industry, with market volatility leading to sleepless nights for traders. Despite the potential benefits of 24-hour trading, a poll conducted by Skylands Capital senior trader Tom Hearden showed that over 70% of respondents were against NYSE moving to 24/7 trading hours.
Meanwhile, startup firm 24X National Exchange is seeking approval from the Securities and Exchange Commission (SEC) to launch the first round-the-clock exchange in the country. The SEC is currently reviewing the requested rule change, with stakeholders considering issues such as costs and the role of clearing houses.
Finance professor James Angel from Georgetown University believes that the market should ultimately decide the viability of 24-hour trading. This marks the second attempt at SEC approval for 24X National Exchange, after a previous proposal was withdrawn due to operational and technical issues.
As the debate over 24-hour stock trading continues, the future of trading hours on major exchanges like NYSE remains uncertain. Stay tuned for updates on this developing story.
