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The New York Stock Exchange (NYSE) is currently exploring the possibility of moving to a 24/7 trading model, a potentially revolutionary move largely influenced by the success of 24/7 crypto markets.
NYSE is testing the ground for a revolution in trading hours
According to the Financial Times, the Intercontinental Exchange, owner of the NYSE, commissioned its data analysis team to survey its members on the benefits of a switch to 24/7 trading. This idea has gained popularity in recent years, influenced by the continued operation of crypto markets.
Currently, the NYSE operates Monday through Friday from 9:30 a.m. to 4:00 p.m. Eastern Time, with limited pre- and post-market sessions. The survey asks participants about their willingness to shop on weekends and at night. Some brokers note demand, but highlight challenges in relation to staffing and liquidity.
Meanwhile, Steve Cohen-backed startup 24 Exchange is seeking SEC approval to launch the first 24/7 exchange. The regulator has several months to review this unprecedented proposal.
Complex questions to solve before you take the plunge
The transition to a 24/7 model raises several operational, regulatory and technical challenges. Clearing centers, which guarantee the settlement of transactions, also operate according to fixed schedules. The committee that oversees the “consolidated tape” that officially records trade prices has begun discussions on the implications of such a development.
In addition, relatively low liquidity outside traditional market hours and settlement risks still dampen the interest of institutional investors. Current night trading offers offered by some brokers are limited to limited orders intended for individuals.
In short, the emergence of a stock market that operates 24/7, like cryptos, still seems distant, but is on the horizon. Despite the many challenges (regulation, liquidity, human resources), growing investor interest can accelerate this small revolution. A matter to be followed closely in the coming months.
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I am passionate about Bitcoin and like to explore the intricacies of blockchain and cryptos and share my discoveries with the community. My dream is to live in a world where privacy and financial freedom are guaranteed for everyone, and I firmly believe that Bitcoin is the tool that can make this possible.
DISCLAIMER
The comments and opinions contained in this article are the author’s alone and should not be considered investment advice. Do your own research before making investment decisions.