US Stock Exchange Receives SEC Approval for 24/7 Trading
A new stock exchange has received approval to operate around the clock, allowing investors to trade for 23 hours a day, five days a week. 24X National Exchange, with backing from Steve Cohen’s Point72 Ventures fund, has been given the green light by the Securities and Exchange Commission to offer trading sessions that cover both daytime hours and include overnight trading.
The exchange’s founder and CEO, Dmitri Galinov, expressed excitement about the SEC’s approval, stating that the goal is to provide traders with more flexibility and access to the market, especially during off-hours when their local markets are closed. This move comes in response to a growing demand from investors to react quickly to news that may break outside of regular US market hours.
The exchange plans to start with three trading sessions that begin at 4 a.m. in New York and end at 7 p.m. Once certain data requirements are met, an overnight session from 8 p.m. to 4 a.m. may be added. The trading schedule will run from Sunday evening through Friday evening, offering continuous trading opportunities throughout the week.
Overnight trading has gained popularity, especially during the pandemic, with platforms like Robinhood Markets Inc. and Interactive Brokers Group Inc. allowing customers to trade US stocks 24 hours a day, five days a week. The New York Stock Exchange has also filed an application to extend its trading hours to accommodate the growing interest in round-the-clock trading.
While some praise the move towards continuous trading opportunities, others, like consumer advocacy group Better Markets, have raised concerns about the potential risks for retail investors. Critics worry that trading during off-hours may result in less liquidity, leading to more volatile and less favorable prices for investors.
It’s clear that the landscape of stock trading is evolving, with new opportunities and challenges arising as technology and market demands continue to shape the industry. Investors should stay informed and consider the implications of these changes on their investment strategies.
