The Stock Market Should Be Open At 3am

The Stock Market Should Be Open At 3am

Startup trading platform 24 Exchange has filed for approval from the SEC to operate around the clock. It would be the first U.S. stock exchange to do so, and would be open 24/7, including weekends and holidays, says an article The Wall Street Journal.

Most stock trading takes place between 9:30am and 4pm Eastern Standard Time on weekdays only, with exchanges closed on holidays. But 24 Exchange would operate continuously, like foreign-exchange and cryptocurrency markets. Led by Dmitri Galinov, a 20-year veteran of electronic trading, 24 Exchange is 3 years old and already offers trading in FX and crypto. Though its parent company, 24 Exchange Bermuda Ltd., is incorporated in Bermuda, the proposed 24/7 stock exchange would be run by a U.S. subsidiary.

As noted in the article, Galinov recently said that, more and more, individual investors are demanding stock trading outside of standard business hours, especially given the round-the-clock nature of crypto. If there’s a big news item over a weekend, investors can’t really pounce on it until the next business day.

24 Exchange would also cater to international investors with an eye on trading U.S. stocks. But there’s no guarantee that the SEC would approve its proposal, and even if it did it would be well into 2022 before the SEC gave its final decision. Some analysts think the plan faces an uphill battle; despite some desire to have 24-hour trading, professional traders also like having the ability to go home and have a life after the market closes.