The New York Stock Exchange (NYSE) is currently exploring the possibility of moving to a 24/7 trading model, a potentially revolutionary move largely influenced by the success of crypto markets that operate around the clock.
The NYSE is testing the ground for a trading hours revolution
According to the Financial Times, the Intercontinental Exchange, owner of the NYSE, has commissioned its data analysis team to survey its members on the merits of a move to 24/7 trading. This idea has gained popularity in recent years, influenced by the continued operation of crypto markets.
Currently, the NYSE operates Monday through Friday from 9:30 a.m. to 4 p.m. Eastern Time, with limited pre- and post-market sessions. L'investigation asks participants about their willingness to trade on weekends and at night. Some brokers note demand, but highlight challenges in terms of staffing and liquidity.
Meanwhile, Steve Cohen-backed startup 24 Exchange is seeking SEC approval to launch the first 24/7 stock exchange. The regulator has several months to review this unprecedented proposal.
Complex questions to resolve before taking the plunge
The transition to a 24/7 model raises numerous operational, regulatory and technical challenges. Clearing houses, which guarantee the settlement of transactions, also operate according to fixed schedules. The committee overseeing the “consolidated tape”, which officially records trading prices, has begun discussions on the implications of such a development.
Furthermore, relatively low liquidity outside traditional market hours and settlement risks still dampen the interest of institutional investors. Current night trading offerings, offered by some brokers, are limited to limit orders intended for individuals.
In short, the advent of a stock market operating 24/7, like cryptos, still seems distant, but is on the horizon. Despite the many challenges (regulation, liquidity, human resources), growing investor interest could accelerate this small revolution. A case to follow closely in the months to come.
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