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Is the Stock Market Open at 3 AM? This Startup Says It Should Be

edited October 6 in Other Investing
“A startup trading platform is seeking approval from the Securities and Exchange Commission to launch the first U.S. stock exchange that would operate around the clock, including on weekends and holidays. The startup, 24 Exchange, said it filed key parts of its application for a national stock-exchange license with the SEC on Monday, including a rulebook and user manual detailing its proposed approach to trading hours.

“Under decades-old conventions, the bulk of stock trading takes place between 9:30 a.m. and 4 p.m. ET on weekdays, and exchanges shut down for holidays, such as Good Friday and Washington’s Birthday. In contrast, 24 Exchange would operate like the foreign-exchange and cryptocurrency markets, which run continuously.”


Excerpt from The Wall Street Journal October 6, 2021

Source


Some observations::

- Later it’s stated that individual investors want the freedom to trade round the clock.

- Under the proposal, trading in fractional shares would be permitted.

- Big time traders / Wall Street professionals aren’t happy with this, as they relish time off for pleasure and relaxation, and apparently would feel a need to stay tuned in to markets 24 / 7 if this passes.

- Personally, I do some of my best thinking at 3 AM - so I support the idea.:)

Comments

  • Under 24/7 trading how would the pricing of mutual funds work?
  • edited October 7
    Changing to 24 hour trading will break a ton of how the markets currently operate I think. The after-hours provides a pause for everything from system upgrades to EOD pricing to letting traders eat, sleep, and have a life outside of work. And especially during periods of market stress, (eg, 2008, 2020) when things go south and adrenaline runs high everywhere, professionals and market managers CANT WAIT for the closing bells to ring so they can catch their breath and assess where things are ahead of the next trading day, be it the Asia, London, or NY opens.

    I'm opposed to this idea, but I'm sure many retail investors -- most of whom probably should be called 'retail gamblers' probably love the idea, though. (@Hank, I also do my best thinking at night, but i also like having time to think w/o worrying I'll 'miss' a move in the markets with whatever I'm pondering.)

    If people want 24 hour trading action to satisfy their fix, they can try Forex .... or futures, if you know what you're doing.
  • beebee
    edited October 7
    Seems like opening bell would tie in nicely with drunks leaving bars at closing time.
  • The markets would be no more than casinos if they operated around the clock. I can’t imagine individual investors profiting from longer hours because, as in gambling, the house always wins. I believe hedge funds and professional traders can access some open market in a remote time zone whenever they wish. Let them trade at their peril. Longer domestic market hours are not something that would do me any good.
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