24/7 Trading Could Shift Power Dynamics in Financial Markets
- The NYSE is seeking SEC approval for around-the-clock trading, following similar plans from Nasdaq and CME.
- Mati Greenspan, CEO of Quantum Economics, claims that middlemen brokers will be the biggest losers in a shift to continuous trading.
- A recent study indicates that after-hours price discovery is less efficient due to lower liquidity, which can lead to price manipulation.
- Decentralized exchange Hyperliquid reported weekly derivatives trading volume exceeding $50 billion during closed market hours.
- Cboe has expanded U.S. index options to a five-day trading week, with plans for full-time trading on the horizon.
The potential introduction of 24/7 trading could significantly alter how prices are set in financial markets by reducing the influence of brokers during off-hours. This change aims to provide retail traders with more opportunities and reduce instances of alleged price manipulation during low liquidity periods.
If implemented, continuous trading may empower traders by allowing real-time responses to market events, potentially disrupting traditional broker advantages seen in after-hours sessions where prices can be manipulated more easily.(Source)
