Is NYSE Considering All-Hours Stock Trading?
The New York Stock Exchange (NYSE) is exploring the possibility of introducing round-the-clock stock trading to align with modern cryptocurrency exchanges that operate 24/7. This move could have significant implications for market participants and the overall trading landscape.
Survey on All-Hours Trading
The Financial Times reported that NYSE conducted a survey to gather opinions on implementing trading outside traditional market hours. The survey sought feedback on weekend trading, staffing overnight sessions, investor protection against price volatility, and the allocation of resources between regular market hours and overnight trading.
- The survey was conducted by NYSE’s data management team.
- Interest in trading popular stocks like Apple and NVIDIA during late-night hours was highlighted.
Current Trading Hours vs. Cryptocurrency Exchanges
While U.S. stock exchanges typically operate from 9:30 am to 4:00 pm ET, with limited pre-market and after-market sessions, cryptocurrency exchanges offer round-the-clock trading. This discrepancy has placed traditional stock trading behind crypto, US treasuries, major currencies, and stock index futures.
- NYSE and Nasdaq currently offer limited pre-market and after-market trading hours.
- Risk factors associated with extended trading hours include lower volume, lower liquidity, higher volatility, and wider spreads.
24/5 Stock Trading on Robinhood vs. NYSE
Although platforms like Robinhood facilitate 24/5 stock trading, they rely on overnight trades with less regulated venues. In contrast, NYSE’s potential expansion into all-hours trading would ensure greater regulatory oversight under the Securities and Exchange Commission (SEC).
- Robinhood offers 24/5 stock trading by utilizing “dark pool” trading venues.
- NYSE’s oversight by the SEC would enhance regulatory supervision compared to dark pool trading.
NY Stock Trading Evolution and 24X Filing with SEC
In a notable development, start-up 24 Exchange (24X) has filed with the SEC to establish the nation’s first all-hours stock exchange. This initiative signals a broader trend towards extending stock trading hours and embracing a more dynamic trading environment.
Impact on Bitcoin ETFs
Although Bitcoin trades around the clock globally, newly launched Bitcoin spot ETFs like Bitwise Bitcoin ETF (BITB) operate within regular stock market hours. If these ETFs transition towards continuous trading like crypto exchanges, it could influence Bitcoin’s trading behavior and market dynamics.
- Bitcoin weekend trading volume has declined due to offline Bitcoin ETFs.
- About one-third of Bitcoin spot volume is now traded through Bitcoin ETFs.
Hot Take: Potential Shift in Stock Trading Hours
The move by NYSE to explore all-hours stock trading reflects a broader shift towards aligning traditional markets with the round-the-clock nature of cryptocurrency exchanges. This evolution could reshape how investors trade stocks and other assets, leading to a more dynamic and accessible trading environment in the future.
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