The New York Stock Exchange (NYSE) is currently seeking feedback from market participants regarding the potential benefits of implementing a 24/7 trading schedule, similar to the trading of cryptocurrencies such as Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH). This move coincides with regulatory scrutiny of a proposal for the first-ever continuous exchange, which has the backing of Steve Cohen.
What Happened: The NYSE, a part of the Intercontinental Exchange (NYSE:ICE), is actively seeking opinions on the possibility of trading stocks round the clock, reported the Financial Times on Monday.
The survey, conducted by the NYSE's data analytics team, underscores the increasing interest in trading major stocks such as Apple Inc (NASDAQ:AAPL) and NVIDIA Corp (NASDAQ:NVDA) during the overnight hours.
The surge in retail investor activity, initially sparked by the COVID-19 pandemic lockdowns, and the continuous trading of cryptocurrencies have been key drivers of this discussion.
While other major markets, including U.S. Treasuries, major currencies, and leading stock index futures, can be traded around the clock, stock exchanges have been relatively slow to adapt. However, several retail brokers, such as Robinhood Markets Inc. (NASDAQ:HOOD) and Interactive Brokers, now offer 24-hour weekday access to U.S. stocks.
"I have no idea how much volume they're going to be doing in the middle of the night. But it's really not up to the SEC to decide whether it's commercially viable or not. I'm in favour of letting the market decide. If it succeeds, we're all better off and if it doesn't, well, the exchange's investors lost," said James Angel, a finance professor at Georgetown University, who filed a letter supporting 24X's plan.
The NYSE survey seeks opinions on various aspects of round-the-clock trading, including whether it should be extended to weekends, how investors should be protected from price fluctuations, and how overnight sessions should be staffed.
Meanwhile, the SEC is reviewing a proposal for the first 24/7 exchange, backed by Steve Cohen's Point72 hedge fund. The SEC has several months to scrutinize the plans, and no issues have been raised with the proposal as of Friday.
Why It Matters: The potential shift to 24-hour trading is a significant development in the financial markets. This move could have a profound impact on the global trading landscape, especially with the rise of retail investors and the increasing popularity of cryptocurrencies.
Robinhood recently faced speculation about a halt in its 24-hour trading service, further highlighting the potential impact of changes in trading hours on the market.
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