The New York Stock Exchange (NYSE) is said to be exploring the possibility of introducing 24-hour stock trading, similar to the operations of cryptocurrency markets. In order to gauge market sentiment, NYSE’s data analytics team has conducted a survey asking market participants if they would support trading that operates 24/7 or only on weekdays for a full 24 hours. Additionally, the survey asks respondents for suggestions on implementing systems that would protect traders from overnight price swings. Currently, NYSE, along with the Nasdaq and Chicago Board Options Exchange, trade from Monday to Friday between 9:30 am to 4:00 pm Eastern Time.
In the United States, certain assets like cryptocurrencies, United States Treasurys, foreign exchange, and leading stock index futures can already be traded 24/7. Some brokerages, such as Robinhood and Interactive Brokers, provide 24-hour weekday access to U.S. stocks through a “dark pool” trading venue that allows international retail investors to trade shares during their daytime hours. However, Robinhood recently halted its 24-hour trading services due to increased tensions between Israel and Iran, raising concerns among investors about the sustainability of round-the-clock trading.
Managing liquidity in a 24/7 trading environment has proven to be a challenging task for trading platforms in the cryptocurrency industry. This often leads to a mismatch between the operating hours of traditional financial institutions and the needs of large crypto traders and market makers. Sleepless nights are a common complaint for traders when the market becomes extremely volatile.
Although the results of NYSE’s poll have not been released, Skylands Capital senior trader Tom Hearden conducted his own poll on Twitter, asking his 19,300 followers if they would support NYSE adopting 24/7 trading hours. Out of the 1,459 respondents, over 70% voted “No.”
Meanwhile, startup firm 24X National Exchange is seeking approval from the Securities and Exchange Commission (SEC) to launch the first round-the-clock exchange in the country. The SEC still has several months to review the requested rule change, while other stakeholders are already considering relevant issues such as cost allocation and the role of clearing houses.
James Angel, a finance professor at Georgetown University, commented on the matter, stating that it is not up to the SEC to determine the commercial viability of 24/7 trading. He emphasized that the SEC’s role is to assess regulatory aspects rather than making commercial judgments.
This marks the second attempt at SEC approval for 24X National Exchange, as the firm withdrew a previous proposal in March 2023 due to operational and technical challenges.