SEC Approves U.S.’s First 24-Hour Stock Exchange | Image Source: Pickpik.com
STAMFORD, Conn., November 29, 2024 – The Securities and Change Commission (SEC) approved the 24X National Stock Exchange, marking a significant transformation in the trade in U.S. securities. This new stock exchange, supported by Point72 Ventures, will introduce trade almost all the time for U.S. equities, providing expanded access to retail and institutional investors. The platform is launched in the last half of 2025, initially running from 4:00 a.m. ET to 7:00 p.m. AND on weekdays, with the intention of extending to 23 hours of business from Sunday evening to Friday evening.
The Stamford-based exchange, founded by Dmitri Galinov, aims to meet the challenges of global trade by providing more flexible market access. “Trains are the most at risk when the market is closed in their geographical location,” said Galinov. He pointed out that 24X will mitigate these risks by offering a seamless capital trade during what was traditionally out of time. This innovation aims to meet the growing demand for night cash, particularly in the Asia-Pacific region.
The 24X national stock exchange is a crucial step in the industry’s broader trend to continue to operate in the marketplace. The evolving cryptomoneda markets have created a precedent for 24 hours of accessibility, urging traditional stock markets to adapt. Brokerages such as Robinhood Markets and Interactive Brokers already offer long hours of business, while Charles Schwab plans to offer 24-hour access to S plagaamp; P 500 and Nasdaq-100 shares by 2025. These developments reflect the growing appetite of investors for the ability to respond to global news at any time.
ESA’s 24X approval follows a second implementation attempt and is involved in discussions on the impact of trade over time. Proponents argue that extended hours offer critical flexibility to global investors, while critics warn against potential disadvantages, including reduced liquidity and increased price volatility during off-the-shelf hours. Benjamin Schifrin, director of securities policy at Better Markets, warned that retail investors could face adverse prices in low-volume markets at night.
The new exchange will be extended in two phases. Initial operations will focus on traditional business hours, with the extended schedule to include night sessions after meeting certain regulatory and data requirements. A one-hour break will maintain the system. The SEC’s approval also highlights the growing competition between commercial platforms, with NYSE Arca recently archived for the weekly 22-hour trade and the Blue Ocean alternative trading system already facilitating the 24-hour trade of certain American stocks.
Although approval has been controversial, it represents a paradigm shift in stock markets, which reduces the gap between traditional trading hours and continued exchange and cryptomoneda trading. The 24X entry should reconfigure investor strategies, presenting opportunities and challenges as industry moves through this new era of accessibility.
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