US Stock Market Considers Following Crypto's Lead with 24/7 Trading
Quote from VATcal on 22/04/2024, 20:55The New York Stock Exchange (NYSE), a cornerstone of American finance, is exploring the possibility of a radical shift - 24/7 trading. This move would mirror the constant operation of cryptocurrency markets and reflects the growing influence of the crypto world on traditional finance.
The NYSE's consideration of a non-stop trading model comes amid a confluence of factors. The continuous operation of digital asset exchanges has undoubtedly played a role. Additionally, the surge in retail trading activity during the COVID-19 pandemic has highlighted the demand for more flexible market access.
A decision by the NYSE to adopt 24/7 trading could reshape market operations and investor engagement. Major US stocks like Apple and Tesla could potentially be traded at any hour, catering to a global audience and aligning the US market with the always-on nature of the modern world.
However, the proposal has also sparked concerns. Critics argue that a nonstop market could exacerbate volatility and fatigue among investors. The Securities and Exchange Commission (SEC) is currently reviewing the application by a new exchange, 24 Exchange, which is aiming to be the first to offer round-the-clock US stock trading. The SEC's decision could set a precedent for the NYSE and other established exchanges.
One way or another, the US stock market appears to be at a crossroads. The possibility of 24/7 trading presents a chance to modernise and compete in a rapidly evolving financial landscape. However, regulators and market participants will need to carefully weigh the potential benefits against the associated risks.
The New York Stock Exchange (NYSE), a cornerstone of American finance, is exploring the possibility of a radical shift - 24/7 trading. This move would mirror the constant operation of cryptocurrency markets and reflects the growing influence of the crypto world on traditional finance.
The NYSE's consideration of a non-stop trading model comes amid a confluence of factors. The continuous operation of digital asset exchanges has undoubtedly played a role. Additionally, the surge in retail trading activity during the COVID-19 pandemic has highlighted the demand for more flexible market access.
A decision by the NYSE to adopt 24/7 trading could reshape market operations and investor engagement. Major US stocks like Apple and Tesla could potentially be traded at any hour, catering to a global audience and aligning the US market with the always-on nature of the modern world.
However, the proposal has also sparked concerns. Critics argue that a nonstop market could exacerbate volatility and fatigue among investors. The Securities and Exchange Commission (SEC) is currently reviewing the application by a new exchange, 24 Exchange, which is aiming to be the first to offer round-the-clock US stock trading. The SEC's decision could set a precedent for the NYSE and other established exchanges.
One way or another, the US stock market appears to be at a crossroads. The possibility of 24/7 trading presents a chance to modernise and compete in a rapidly evolving financial landscape. However, regulators and market participants will need to carefully weigh the potential benefits against the associated risks.
