The New York Stock Exchange (NYSE) is conducting a poll of market participants on the benefits of trading stocks around the clock. Meanwhile, regulators are investigating the first application for non-stop stock exchange opening hours, the Financial Times has learned.
At the NYSE, which belongs to the Intercontinental Exchange group, the survey was not initiated by the management of the exchange, but by its data analysis group. However, it shows that there is an increasing demand for continuous trading in the stocks with the highest turnover. Especially as more and more private investors around the world started to go public during the coronavirus epidemic. And some of them don’t care what they trade, be it gold, shares, bitcoin or foreign exchange. However, foreign exchange, cryptocurrencies, especially bitcoin, are traded 24 hours a day, just as American government securities or futures contracts of major stock indexes can be traded day and night, from Monday to Friday. There is even a product that is traded on weekends. Thus, according to the signs, there would be a demand to extend the official trading hours of shares.
There are a number of retail brokers in the US that offer clients the opportunity to trade after-hours. In the over-the-counter market, not only American but also Asian clients are active. Settlement and trading are usually carried out through a so-called “dark pool” system. These practically function as over-the-counter exchanges – often with the active participation of larger investment banks. The big problem with these so-called “dark pools” is that the pricing of the products is not at all as transparent as on an exchange, and the same can be said about the deals made.
However, a stock exchange open overnight could also mean a change in the perception of night trading due to regulatory oversight. Stock markets in the United States are directly supervised by the Securities and Exchange Commission. And this constantly tests their operational stability and safety, based on a strict set of rules. Changing the trading rules also always required supervisory permission. In addition, the price of stock exchange transactions has a prominent role in a lot of official records and accounting. The recognition of trades in these types of regulated markets is much wider.
In its public opinion research, the NYSE also looked for the answer to whether market participants would like to use day-night trading only on working days or on weekends. They wondered whether the stock exchange members would have adequate personnel to service extended trading, and what methods they would use to protect against excessively violent price fluctuations.
The timing of the survey is not accidental. With the support of the well-known hedge fund manager Steve Cohen’s Point72 foundation, a company called 24 Exchange is about to launch, which has already submitted its application for approval to the SEC to launch a 24/7 stock exchange.
Information
The information and analyzes on this page reflect the private opinion of the authors. The writings appearing on this page do not implement CXXXVIII of 2007. Act (Bszt.) Section 4 (2). investment analysis according to point 8 and investment advice according to point 9.
When making any investment decision, the appropriateness of the given investment can only be determined by a personalized examination of the given investor, which this site does not undertake and is not suitable for. Before making individual investment decisions, get detailed information from several sources and, if necessary, consult with a personal investment advisor!
