How 24/7 Trading Could Transform Stock Exchanges Into Casinos
In response to a proposal by the New York Stock Exchange to extend trading hours on its NYSE Arca securities exchange to 22 hours a day, 5 days a week, Benjamin Schiffrin, Director of Securities Policy, expressed concerns. He stated that allowing overnight trading on securities exchanges may create an environment similar to casinos. Current extended trading hours already favor experienced market participants over retail investors, putting the latter at a disadvantage.
Schiffrin drew a parallel to sports betting, highlighting the addictive nature of gambling facilitated by the availability of continuous betting options. He cautioned that replicating this model in the financial markets, as seen with Robinhood’s potential move into sports betting, could prioritize industry profits over investor protection.
Schiffrin emphasized the importance of investor well-being, suggesting that the Securities and Exchange Commission (SEC) should prioritize safeguarding investors’ interests rather than solely focusing on industry profitability. He concluded that expanding trading hours to 22 hours a day is not in the best interest of investors.
Better Markets, a non-profit organization established after the 2008 financial crisis, advocates for financial market reforms that benefit the public. The organization collaborates with various stakeholders to promote policies that strengthen the financial system, ensuring the protection and growth of Americans’ financial interests.
For media inquiries or more information on Better Markets’ initiatives, please reach out to press@bettermarkets.org or call 202-618-6433. Visit www.bettermarkets.org to learn more about their efforts to create a more resilient and inclusive financial system.
© 2024 Better Markets. All Rights Reserved.