SEC Puts 24-Hour Trading on the Agenda
The Securities and Exchange Commission (SEC) has scheduled discussions in September to explore the possibility of major stock exchanges extending their trading hours to 24/7. The agencies will meet with Nasdaq, Cboe, and the London Stock Exchange to discuss the pros and cons of such a move.
The idea is not new, but it's gaining traction as the crypto market continues to trade around the clock. Bitcoin and Ethereum don't sleep, and neither do their investors. The traditional stock markets are feeling pressure to adapt to this new reality.
The benefits of 24-hour trading include increased liquidity, more participation, and smoother price action. However, there are also concerns about the operational costs of extending trading hours. Financial institutions would need to redesign their staffing models, compliance teams, and risk management processes.