“24-Hour Stock Market Trading: The Future of Wall Street?”
The stock market is on the brink of a major transformation as the idea of a 24-hour trading exchange gains momentum on Wall Street. 24X National Exchange, backed by hedge fund founder Steve Cohen, is seeking SEC approval to operate an around-the-clock exchange, and even the New York Stock Exchange has reportedly polled market participants about interest in 24-hour access.
Several industry executives believe that the shift from a traditional six-and-a-half-hour trading day to a never-ending one is becoming more likely, despite concerns about volatility in late-night sessions with low volume. Interactive Brokers chief strategist Steve Sosnick sees this as a “commercial inevitability,” driven by global interest in highly tradable US instruments.
Companies like Interactive Brokers and Robinhood have already expanded their offerings to include overnight trading sessions, with Robinhood reporting over $10 billion in volumes in its overnight transactions since launching its 24-hour market a year ago. Robinhood’s chief brokerage officer, Steve Quirk, predicts that 24-hour trading will become the norm within five years, catering to a new generation of investors who expect access to markets at all hours.
The demand for 24-hour trading is driven not only by domestic investors but also by foreign investors who want to participate in the US markets. As US-listed companies earn a significant portion of their revenue internationally, the appeal of trading around the clock is clear.
While the transition to a 24-hour market won’t happen overnight, new players like 24X are eager to enter the space. CEO Dmitri Galinov believes that overseas and retail investors will drive the flow towards 24-hour trading, eventually leading to a full transition.
Despite the potential benefits of 24-hour trading, there are concerns about liquidity and market dynamics. CME Group has seen increased interest in nontraditional US hours trading, with key market-moving events often occurring outside of regular trading hours. The ability to react to news flow in real-time is becoming increasingly important for investors.
Overall, the shift towards a 24-hour trading market represents a significant evolution in the financial industry. While it may not have an immediate impact on the average US investor, it opens up new opportunities for buying and selling securities. As the demand for liquidity in the market continues to grow, the prospect of 24-hour trading is becoming more of a reality.
In conclusion, the potential for a 24-hour trading exchange signals a new era for the stock market, catering to the demands of a global and digitally savvy investor base. As the industry adapts to meet these changing needs, the investing landscape is set to undergo a profound transformation.