Report: NYSE Explores Interest in Round-the-Clock Stock Trading Similar to Cryptocurrency

The New York Stock Exchange (NYSE) is said to be exploring the possibility of introducing 24-hour 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 round-the-clock trading and 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, trades from Monday to Friday between 9:30 am and 4:00 pm Eastern Time. In the US, certain assets such as cryptocurrencies, US Treasuries, foreign exchange, and leading stock index futures can already be traded 24/7. Some brokerages, including Robinhood and Interactive Brokers, offer 24-hour weekday access to US stocks through a “dark pool” trading venue, allowing international retail investors to trade shares during their local business hours. However, last week, it was reported that Robinhood had suspended its 24-hour trading services due to increased tensions between Israel and Iran, raising concerns about the sustainability of round-the-clock trading. Managing liquidity in a 24/7 trading environment has proven to be a challenge for cryptocurrency platforms, creating 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 highly volatile. While the results of NYSE’s survey have not been disclosed, Skylands Capital senior trader Tom Hearden conducted his own poll on Twitter, with over 70% of the 1,459 respondents voting against NYSE moving to 24/7 trading hours. NYSE’s survey comes as startup firm 24X National Exchange seeks approval from the Securities and Exchange Commission (SEC) to launch the first round-the-clock exchange in the US. The SEC is still reviewing the requested rule change, and other stakeholders are considering issues such as cost allocation and the role of clearing houses. James Angel, a finance professor at Georgetown University, stated that it is not up to the SEC to determine the commercial viability of 24-hour trading. This is the second attempt by 24X National Exchange to obtain SEC approval, as the firm withdrew a previous proposal in March 2023 due to operational and technical concerns.