"Stocks Like Coins?"... US Opens First 24-Hour Stock Exchange

However, securities trading is not allowed on Saturdays

The United States' first 24-hour stock exchange is set to open.

On the 27th (local time), the U.S. Securities and Exchange Commission (SEC) announced that it has approved the 24-hour stock trading plan submitted by the 24X National Exchange.

The SEC plans to initially allow the 24X National Exchange to operate only during regular trading hours (16 hours) and then, upon meeting certain requirements such as funding and infrastructure, permit trading from Sunday to Thursday, between 8 PM and 4 AM the following day.

The 24X National Exchange is a startup invested in by Point72, founded by hedge fund industry heavyweight Steve Cohen.

In particular, the advantage of the 24X National Exchange is expected to be the ability to trade securities on Sundays. Since the COVID-19 pandemic, many platforms have already allowed 24-hour stock trading five days a week, excluding weekends. Robinhood and Interactive Brokers are representative examples. The New York Stock Exchange has also recently submitted an application to the SEC to allow 22 hours of trading on weekdays.

However, some concerns have been raised about this extended trading. Because trading volume is lower compared to regular hours, stock price volatility is inevitably much higher. As a result, investors may bear the brunt of the risks.

Benjamin Shiprin, Head of Securities Policy at Better Markets, warned, “When trading volume decreases, the quality of trading can deteriorate, which may reduce the accuracy of stock price valuation.”