NYSE Considers The Launch Of 24/7 Trading On Its Platform
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The New York Stock Exchange (NYSE) is getting people’s opinions on the possible introduction of 24/7 trading. They draw inspiration from cryptocurrency trading, which is always accessible. As many people are demanding 24/7 trading, the NYSE has provided a survey to know their view on it.
The discussion surrounding non-stop stock trading has increased rapidly in recent years. This is because digital assets markets have seen major successes in the past few years, and retail investors are participating more.
Assets like US Treasurys, cryptocurrencies, and top stock index futures can be traded at all times. However, stock exchanges are restricted to limited trading hours.
The NYSE Report Shows That Many Traders Want To Trade Stocks At All Time
The NYSE’s survey reveals an increasing interest in extending trade hours to meet the needs of investors. The survey was conducted by NYSE’s data analytics team. It aims to know the level of support for non-stop trading. It also seeks to understand the vital precautions to protect traders from overnight market swings.
Statistics show that many people prefer trading after regular sessions close. For instance, Robinhood presented a report in March indicating that about a quarter of trading happens outside the usual market hours.
Through Robinhood’s 24-Hour Market service launched last year, several investors can open and close trades for complete 24 hours a day from Sunday evening to Friday evening. However, these orders are limited. The NYSE aims to introduce full trading and offer access to market orders.
The transition to around-the-clock stock trading brings forth numerous difficulties that must be tackled. Managing liquidity in a 24/7 trading environment is a difficult task to fulfill, even for well-known cryptocurrency platforms. When traditional banks and big traders have different hours, it can cause real problems for traders as they might lose sleep when the market gets highly volatile.
Many Retail Companies Plan To Integrate 24/7 Trading
The costs of implementing and maintaining around-the-clock trading infrastructure should be given careful consideration. Clearing houses are vital in settling trades. At the moment, they have a specific operating time. If trading hours get longer, they’ll need to make some adjustments to fulfill all trades.
Several retail trading companies have started providing users the option to trade during increased market hours. Last year several industry giants like eToro, a social trading platform, and the financial app Revolut also offered their customers the opportunity to trade for longer hours.
The NYSE is considering the possibility of trading all the time. Meanwhile, a new company called 24X National Exchange aims to be the first to introduce round-the-clock trading in the country. They’re asking the Securities and Exchange Commission (SEC) for permission.
