The NYSE Contemplates a Leap into Continuous Trading for 24 Hours

In a move that could revolutionize the stock market, the New York Stock Exchange (NYSE) is exploring the possibility of extending its trading hours to operate non-stop. This exploration, as reported by the Financial Times, involves the NYSE’s analytics team actively seeking feedback on the potential for after-hours trading.

The push towards a 24/7 trading framework is largely inspired by the cryptocurrency markets, which have captivated retail investors with their round-the-clock trading availability, particularly during the surge of investor interest in 2020. The NYSE’s shift towards an all-hours trading model would mark a significant transformation for the preeminent exchange, potentially aligning traditional stock trading more closely with the always-open crypto markets.

Market Forces vs. Regulatory Oversight

The debate over this transition is not just about logistics; it touches on the broader question of market self-regulation versus governmental oversight. James Angel, a finance professor at Georgetown University, argues that the market should be the ultimate arbiter of such a change. “I have no idea how much volume they’re going to be doing in the middle of the night. But it’s really not up to the SEC to decide whether it’s commercially viable or not. I’m in favor of letting the market decide. If it succeeds, we’re all better off, and if it doesn’t, well, the exchange’s investors lost,” he states.

Amidst these discussions, a financial start-up named 24 Exchange, supported by Point72, is seeking the green light from the SEC to establish the first 24-hour traditional stock exchange. This initiative comes after 24 Exchange retracted a previous proposal due to technical challenges. However, their renewed proposal has so far not elicited any objections, leaving the SEC with several months to formulate a response.