More opportunity to get burnt on the stock market perhaps.Be...

More opportunity to get burnt on the stock market perhaps.

Be interesting if the ASX takes this lead and follows suite in the near future.

New York Stock Exchange explores 24/7 trading to keep up with crypto markets (*********.com.au)

New York disallowed explores 24/7 trading to keep up with crypto markets

By Imelda Cotton - April26, 2024

The New York Stock Exchange (NYSE) isconsidering 24-hour stock trading in an effort to match the uninterruptedenvironment of cryptocurrency markets.

The exchange’s data analytics team issurveying market participants to seek their interest and support fortransitioning to a 24/7 trading model.

The survey considers extended tradingto challenge the traditional Monday-to-Friday schedule and queries the ways inwhich investors could be protected from erratic price swings.

It asks respondents to consider if“time spent thinking about overnight trading would be better spent on regularmarket hour trading” and how they would staff any overnight sessions.

The NYSE said the poll aims to addressthe growing global appetite for constant buy-sell opportunities, mirroring thenon-stop nature of crypto trading.

Rise of digital assets

While assets such as cryptocurrencies,US Treasuries and leading stock index futures can already be traded around theclock, stock exchanges have traditionally adhered to limited trading hours.

The continuous trading model couldpotentially reduce the volatility seen at market openings, as news and eventswould immediately reflect in stock prices, leading to a more stable andpredictable market environment.

Round-the-clock trading has become ahot topic in recent years with the rise of digital assets and an increase inretail investor activity during the Covid-19 lockdowns.

US brokers and trading platforms sayactivity in the so-called “overnight period” between the market closing andre-opening the next day has risen sharply in the past 12 months, driven bydemand from smaller investors in Asia and Europe.

Robinhood service

In July, retail investors began tradingaround the clock from Sunday evening to Friday evening using a 24-hour marketservice introduced by investing platform Robinhood, though only limit orderscan generally be placed at present.

“We are relentlessly focused onbuilding products tailored to fit people’s lives and make investing moreaccessible to everyone – not just a select few,” the company said in astatement at the time of launch.

“We have often heard from customersthat it is tough to find time for investing during regular market hours withwork, family and everything in between.”

24 Exchange filing

In March, multi-asset class start-up 24Exchange announced it would file an application to create the nation’s firstfully-electronic exchange for round-the-clock trading by investors worldwide.

The filing is the second attempt forthe company after it withdrew a proposal last year over operational andtechnical issues.

24 Exchange operates on the belief thattraders are most at risk when the market is closed in their geographiclocation.

It aims to eliminate this problem byoffering 24/7 retail trading.

If successful in its licence bid, thecompany said it would represent the “highest levels of regulatory scrutiny andoversight – as well as of investor protections, resilience and quality – that aglobal equities trading platform could achieve”.