SEC Prepares for Potential Expansion of Trading Hours
- SEC Chair Gary Atkins believes tokenization could enhance efficiency in the securities industry.
- Atkins emphasized that this approach may reduce settlement failures and combat abusive naked short selling.
- Commissioner Hester Peirce noted concerns about trading hour expansion, including wider spreads and increased price volatility.
- The SEC is already preparing for adjustments to enable around-the-clock trading, reflecting the nature of crypto markets.
The SEC’s potential move towards extending trading hours aims to align with the continuous operation of crypto markets, despite concerns from firms about managing technology issues and market volatility during off-hours.
As preparations are underway, the SEC’s focus on tokenization could significantly impact market operations by addressing risks associated with traditional trading practices. (Source)
