The New York Stock Exchange (NYSE), the leading exchange of the U.S. New York stock market, is reportedly planning to extend the daily trading hours of its electronic trading platform, NYSE Arca, CNBC reported on the 28th (local time).
According to the report, if the U.S. Securities and Exchange Commission (SEC) approves the extension, the daily trading hours will increase by 6 hours from the current 16 hours to 22 hours. Currently, the NYSE operates trading hours from 4:00 AM to 8:00 PM Eastern Time (5:00 PM to 9:00 AM the next day Korean time). Within this, the regular trading session runs from 9:30 AM to 4:00 PM (10:30 PM to 5:00 AM the next day Korean time), with pre-market and after-hours trading sessions before and after the regular session.
The NYSE is considering moving the pre-market trading start time earlier to 1:30 AM (2:30 PM Korean time) and extending the after-hours trading until 11:30 PM (12:30 PM Korean time). If the extension is approved, it will become easier to trade NYSE-listed stocks during daytime hours in Korea.
Kevin Teal, Senior Market Executive at the NYSE, said, "Interest from individual and institutional investors in U.S. stocks continues to grow, both domestically and internationally," adding, "Given current investor demand and market infrastructure availability, the extension plan is the right approach."
Analysts suggest that the NYSE's push to extend trading hours is aimed at competing with alternative trading systems (ATS), which already allow 24-hour trading of U.S. stocks. The U.S. online stock trading platform Robinhood has partnered with the ATS Blue Ocean Technology to operate a 24-hour stock trading system.
However, some market participants argue that extending trading hours is premature, as trading volume during nighttime hours is low and most trading demand is speculative in nature. Jim Toes, CEO of the Securities Traders Association, expressed concern, calling it "speculative demand" and a "hasty move."
CNBC reported that the SEC's approval process could take up to 240 days from the application date. Teal confirmed that the NYSE plans to submit updated rules to the SEC but did not disclose a specific timeline.
The parent company of the NYSE is Intercontinental Exchange (ICE), which also owns the London International Petroleum Exchange and the Chicago Stock Exchange. Meanwhile, Nasdaq, another leading exchange in the New York stock market alongside the NYSE, declined CNBC's request for comment on the NYSE's trading hours extension plan, the outlet added.
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