The New York Stock Exchange (NYSE) is reportedly exploring the possibility of introducing 24-hour trading, similar to cryptocurrency markets, to gauge trader interest. In order to assess market sentiment, NYSE’s data analytics team has conducted a survey asking participants if they would support round-the-clock or 24-hour weekday trading, and if so, what measures should be implemented to protect traders from overnight price fluctuations, according to a report from the Financial Times on April 22.
Currently, NYSE, along with Nasdaq and the Chicago Board Options Exchange, operates from Monday to Friday between 9:30 am and 4:00 pm Eastern Time. However, in the United States, assets like cryptocurrencies, US Treasurys, foreign exchange, and leading stock index futures can already be traded 24/7. Some platforms, such as Robinhood and Interactive Brokers, also offer 24-hour weekday access to US stocks through a “dark pool” trading venue, allowing international retail investors to trade during their local daytime hours.
However, Robinhood recently suspended its 24-hour trading services due to increased tensions between Israel and Iran, which raised concerns among investors about the sustainability of round-the-clock trading. Managing liquidity in a 24/7 trading environment has proven to be challenging for cryptocurrency platforms, often causing a mismatch between the operating hours of traditional financial institutions and the needs of large crypto traders and market makers. Traders also face sleepless nights when the market becomes highly volatile.
While NYSE’s survey results have not been disclosed, Skylands Capital senior trader Tom Hearden conducted his own poll among his 19,300 followers on Twitter, asking if they would support NYSE moving to 24/7 trading hours. Out of the 1,459 respondents, over 70% voted against it.
In parallel, startup firm 24X National Exchange is currently seeking approval from the Securities and Exchange Commission (SEC) to launch the first 24-hour exchange in the United States. The SEC is still reviewing the requested rule change, which could take months, while other stakeholders are already discussing matters such as cost allocation and the role of clearing houses.
James Angel, a finance professor at Georgetown University, commented to the Financial Times that the SEC’s decision should not be based on the commercial viability of 24-hour trading, but rather on other factors. This marks the company’s second attempt at securing SEC approval, as they withdrew their initial proposal in March 2023 due to operational and technical issues.