The Securities and Exchange Commission (SEC) announced it will host a roundtable on September 17 to discuss moving toward 24-hour equity markets trading in the U.S. The event will address preparations for overnight trading, operations and resiliency in a 24-hour market, and opportunities and challenges for expansion.
Chairman Paul Atkins called the prospect of U.S. equity markets aligning with those that already trade continuously “exciting” while emphasizing the need for investor protections.
The push for 24-hour equity markets trading
This roundtable shows there’s a real push for longer trading hours in the U.S. equity markets, which currently operate from 9:30 a.m. to 4:00 p.m. ET. The SEC is now formally engaging with industry stakeholders on the infrastructure and operational requirements needed to support around-the-clock trading.
Chairman Atkins framed the move as a natural evolution: “We are moving towards a new day (and night) in the U.S. equity markets.” The discussion will cover overnight trading infrastructure, market resiliency, and investor protections. The agency is inviting public comment on the topic, with submissions referencing File Number 4-913.
What the roundtable will cover
The roundtable will focus on preparations for 24-hour trading, including the operational challenges and opportunities for expansion. Key topics include:
- Infrastructure to support overnight trading
- Market resiliency during off-hours
- Ensuring investor and customer protections are maintained in a continuous trading environment
This whole thing is part of a bigger project by Chairman Atkins to give our market rules a fresh look, following a “comprehensive review” of securities market rules back in February. The event is open to the public and will be streaming live on SEC.gov. Agenda and panelist details will be announced closer to the event.
The crypto catalyst: 24/7 market pressure
The SEC is pushing for 24-hour equity markets trading largely because crypto has changed what investors expect. While traditional markets stick to regular business hours, crypto never sleeps, and people are getting used to trading around the clock.
Major exchanges are already getting ready: the New York Stock Exchange (NYSE) has proposed moving to 22-hour trading, Nasdaq is pushing for 23-hour weekday trading, and 24 Exchange is aiming for a 23-hour model now that they have gotten the initial thumbs up from the SEC.
For everyone in the market, this means getting ready for some big changes: traders will need to upgrade their tech, figure out how to manage liquidity overnight, and keep security at the top of the list.
