NYSE Surveys Market Participants on the Possibility of 24-Hour Trading

The New York Stock Exchange (NYSE) is seeking feedback from market participants regarding the possibility of implementing 24-hour trading. This move comes as regulators are reviewing an application for the establishment of the first 24/7 trading platform.

The survey, conducted by the NYSE’s data analytics team, reflects the increasing interest in trading popular stocks like Nvidia and Apple during overnight hours from 8pm to 4am Eastern time.

The concept of round-the-clock trading has gained attention in recent times, in part due to the continuous operation of cryptocurrency trading platforms and the growth of retail investor activity, especially following the lockdowns imposed during the coronavirus pandemic.

While other major financial markets such as US Treasuries, major currencies, and leading stock index futures can be traded throughout the week, stock exchanges have lagged behind in offering extended trading hours.

Certain retail brokerage firms, including Robinhood and Interactive Brokers, now provide 24-hour weekday access to US stocks. These trades are either executed internally or through “dark pool” trading venues like Blue Ocean, where trades often involve Asian retail investors during their daytime hours.

The introduction of an overnight exchange would represent a significant shift in late trading practices, primarily due to the stringent regulatory oversight that exchanges are subject to. Exchanges are closely monitored by the Securities and Exchange Commission, ensuring stability, security, and compliance with regulations, including any modifications to trading rules.

Moreover, trades conducted on exchanges contribute to the consolidated “tape,” which serves as the official record of trading prices, meaning overnight trading activity could play a crucial role in setting the tone for regular trading hours.