NYSE Eyes 24/7 Stock Trading Amid Market Demand

The New York Stock Exchange is surveying market participants on the feasibility of transitioning to 24/7 trading, mirroring the round-the-clock operations of cryptocurrencies. This shift has gained traction due to the rise of crypto trading and increased retail investor activity during the Covid-19 pandemic.

NYSE Explores 24/7 Stock Trading, Seeking Market Feedback Amidst Growing Demand

The New York Stock Exchange (NYSE), a bastion of American finance since its inception in the 18th century, is venturing into uncharted territory by soliciting opinions from market participants on the potential adoption of 24/7 stock trading. This audacious move signals a tectonic shift in the traditional market landscape, driven by the burgeoning popularity of cryptocurrencies and the exponential growth of retail investor activity.

The pandemic-induced surge in cryptocurrency trading, coupled with a remarkable boom in retail investor engagement, propelled the concept of round-the-clock trading into the spotlight. The NYSE, renowned for its iconic bell-ringing ceremonies demarcating the start and end of the trading day, is now considering extending its operations beyond these hallowed hours.

The catalyst behind this seismic shift is a startup called 24 Exchange, backed by none other than billionaire hedge fund maestro Steve Cohen. This trailblazing platform is poised to become the first stock exchange to facilitate 24/7 trading, pushing the boundaries of accessibility in the financial markets.

Moreover, several retail brokers, such as the ubiquitous Robinhood, have already adopted round-the-clock trading models, further fueling the demand for extended market hours. As Dmitri Galin, founder and CEO of 24 Exchange, astutely observed in 2023, "Anyone who wants to trade crypto 24/7 would also like to trade Apple or Microsoft 24/7."

Undoubtedly, the allure of 24/7 trading stems from the uninterrupted availability of trading opportunities. It caters to the globalized nature of today's markets, where investors from diverse time zones seek seamless access to financial assets. Furthermore, the influx of investors from Asia and Europe into U.S. financial markets has exacerbated the need for extended trading hours.

Brian Hyndman, chief executive of Blue Ocean, an overnight-trading provider, succinctly captured the prevailing sentiment in a recent interview with the Financial Times: "The world changed with the pandemic and with crypto trading 24/7. Everybody has the infrastructure and the support to handle trading overnight now."

The NYSE's survey delves into the intricacies of round-the-clock trading, seeking insights from market participants on various aspects. One key area of exploration centers on the preferred format of overnight trading, namely, whether it should operate seven days a week or adopt a more tailored approach. The survey also delves into the crucial question of investor protection during extended trading hours, ensuring adequate safeguards against price fluctuations. Staffing arrangements for these overnight sessions are another critical consideration being scrutinized by the NYSE.

The Securities and Exchange Commission (SEC), the regulatory behemoth overseeing the U.S. securities industry, holds the key to the fate of 24/7 stock trading. The SEC is currently reviewing 24 Exchange's application, and a decision is expected within the next several months. The outcome of this application will undeniably shape the future of stock trading in the United States.

24/7 stock trading presents both unparalleled opportunities and significant challenges. The NYSE's exploration of this novel concept underscores its commitment to adapting to the evolving financial landscape and meeting the growing demands of market participants. As the SEC contemplates its decision, the industry eagerly awaits the verdict that will determine the future of stock trading in the digital age.