The 24X National Exchange has been approved by U.S. regulators to operate as a nonstop stock exchange, allowing traders to access liquidity beyond official market hours. This move is expected to enhance overnight trading opportunities for investors.
According to a statement released on Nov. 27, the exchange will be the first national securities exchange in the U.S. to enable trading of U.S. securities for 23 hours each workday. The launch will occur in two stages, with the first stage operating from 4 a.m. ET to 7 p.m. ET on weekdays starting in the second half of the following year.
In the second stage, trading will be available from 8 p.m. ET on Sunday through 7 p.m. ET on Friday, with a one-hour operational pause each trading day for system tests and upgrades. Dmitri Galinov, the founder and CEO of 24 Exchange, expressed excitement over the SEC approval, emphasizing the Exchange’s customer-centric approach and adaptability to market demands.
The 24X National Exchange aims to address the challenge of traders being unable to exit positions during closed market hours, especially in response to sudden events. By providing around-the-clock trading, the exchange seeks to enhance overnight liquidity for American equities, leveraging trading volumes from the Asia Pacific region.
While some procedures are still pending, including additional filings with the SEC, the company is working towards activating 24-hour trading. However, Benjamin Schiffrin, the director of securities policy at Better Markets, criticized the SEC’s approval, citing concerns about increased risks for retail investors during overnight trading sessions.
Schiffrin highlighted the potential for riskier behaviors and susceptibility to inducements during nighttime trading. He cautioned that overnight trading may expose retail investors to less favorable prices and increased volatility, ultimately leading to financial losses.
In response to the approval of 24X National Exchange, the NYSE announced plans to extend weekday trading hours at its Arca equities exchange to 22 hours per day. This update will allow trading between 1:30 a.m. and 11:30 p.m. ET on weekdays, offering a fully electronic platform for trading U.S.-listed stocks, ETFs, and closed-end funds. Can you please rewrite this sentence?
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