NYSE Considers Transition to 24/7 Stock Trading
The world's largest stock exchange is currently conducting a survey to gather opinions on the feasibility of trading stocks 24/7.
The question, initiated by the data analytics team at the New York Stock Exchange (NYSE), proposes an idea that could potentially be groundbreaking, yet also somewhat outdated and impractical. In today’s world, almost every form of commerce, from booking plane tickets to refilling prescriptions, is available 24 hours a day.
Despite the historical precedence, those managing stock exchanges are not ignorant of technological advancements. Even the largest institutions cannot resist the advances of technology indefinitely, and this, combined with requests from influential hedge fund manager Steve Cohen to launch his own 24/7 exchange, is prompting the NYSE to reconsider. As noted by the Financial Times, which first reported on the survey:
The matter has gained considerable attention in recent years, partly prompted by the 24/7 operation of cryptocurrency trading and the surge in retail investor activity initially spurred by coronavirus pandemic lockdowns. Stock exchanges have fallen behind in a world where other major markets, including U.S. Treasuries, major currencies, and leading stock index futures, can be traded around the clock from Monday to Friday.
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The FT also highlights that Robinhood and other newer brokerages have been utilizing dark pools or their own inventories to offer their customers a trading experience akin to 24/7. Additionally, there may be a policy argument for the NYSE to transition to round-the-clock trading: Keeping the market closed for hours or days at a time increases credit risk and can result in significant market fluctuations following major weekend or late-night events.
Others might argue that the NYSE’s current regulations offer an opportunity for everyone to collectively pause between trading frenzies, leading to better trading decisions. There are also intangible benefits to the current system, such as the charm and tradition of ringing the opening bell (it’s fun!), and the notion that everyone—especially in America—would benefit from working and trading a little less.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
