SEC Prepares for 24-Hour Trading in US Stock Market

The US Securities and Exchange Commission (SEC) is planning to allow 24-hour trading in the US stock market, according to SEC Chair Paul Atkins. The goal is to enable investors to respond faster to market developments, attract global investors, and boost liquidity.

Atkins mentioned that the Depository Trust & Clearing Corp. has already implemented a five-days-a-week, 23-hours-a-day trading system, known as 23x5, for clearing and settlement. The SEC is also working with other industry players to establish price fluctuation limits for overnight trading and risk-management standards for exchanges.

The Securities Information Processor (SIP) is making preparations to provide price data during overnight hours. Atkins believes that tokenized securities and blockchain technology can improve the efficiency of 24-hour trading and reduce the risk of naked short selling, where shares are sold without being secured first.