NYSE Shows Interest in 24/7 Stock Trading Like Digital Assets

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The New York Stock Exchange (NYSE) is currently wondering if traders in the United States would be interested in embracing 24-hour stock trading, similar to how the cryptocurrency market operates. 

It is important to note that the prices of digital assets continue to increase or decrease round the clock, and when it comes to stock markets, the assets do not trade on public holidays or weekends. The NYSE and other exchanges are only open for a few hours, after which they close. 

NYSE Conducts a Survey

To gauge market sentiment, the data analytics team at NYSE recently conducted a survey asking participants whether they would support 24/7 or 24-hour weekday trading. The survey also sought opinions on implementing systems to protect traders from overnight price swings, as reported by 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 a.m. and 4:00 p.m. Eastern Time. However, with the rise of global markets and digital assets, there’s a growing debate about extending trading hours.

Sustainability of 24/7 Trading

In the United States, assets like cryptocurrencies, United States Treasurys, foreign exchange, and leading stock index futures are already tradable 24/7. Platforms like Robinhood and Interactive Brokers offer 24-hour weekday access to US stocks, using a “dark pool” trading venue for international retail investors.

However, recent events have raised concerns about the sustainability of around-the-clock trading. Robinhood’s suspension of 24-hour trading services following increased tensions between Israel and Iran highlighted potential risks. 

Managing liquidity in a 24/7 trading environment has proven challenging, especially in the cryptocurrency industry, often leading to mismatches between the needs of traders and market makers.

NYSE Hasn’t Released Survey Results

Cryptocurrency research firm Kaiko noted the difficulties, pointing out that it creates a mismatch between traditional financial institutions’ operating hours and the needs of large crypto traders. Traders also face sleepless nights during extreme market volatility.

While NYSE hasn’t released the survey results, Skylands Capital senior trader Tom Hearden conducted a poll among his followers, with over 70% of respondents voting against NYSE moving to 24/7 trading hours.

Key Challenges and Considerations

The debate around 24/7 trading highlights several key challenges and considerations. One major concern is the impact on trader well-being, as extended trading hours can lead to increased stress and burnout. Moreover, ensuring adequate liquidity and risk management in a continuously operating market is crucial.

While there are potential benefits to 24/7 trading, including increased accessibility and flexibility, it requires careful planning and infrastructure to mitigate risks effectively.

As NYSE explores the possibility of extending trading hours, it must address these challenges and consider market participants’ sentiments to ensure a balanced and sustainable approach to 24/7 trading.

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