The New York Stock Exchange (NYSE) is reportedly considering launching a 24/7 exchange platform. They are of course inspired by bitcoin, which has operated in this way since its early years. To test market sentiment, NYSE is currently conducting research among its customers to see whether they are interested in this.
Good development for the stock market?
There are of course plenty of pros and cons when it comes to these types of developments. An important argument for this is that this makes shares “more liquid”. Especially in the sense that you can always sell them.
Suppose you need money at a certain time and the market is still closed for two or three days, that can be very painful.
On the other hand, the market being open 24/7 also causes stress. The crypto industry is always going strong and that will ensure that some people always sit behind the computer.
Of course, that’s not what life is meant for. In principle, the stock market has always worked this way, so you may wonder to what extent it is necessary to facilitate 24/7 trading. Maybe it’s nice if the stock markets are closed sometimes.
24/7 trading in US stocks is already possible
By the way, it is already possible to trade in American shares 24/7. For example, Robinhood and Interactive Brokers, among others, offer platforms by facilitating a so-called “dark pool”.
Last week, Robinhood remarkably paused 24/7 trading due to tensions between Israel and Iran, causing investors to immediately question the sustainability of 24/7 trading.
In particular, ensuring liquidity during 24/7 trading is a difficult task for many platforms. At some hours there will be little supply and demand, so relatively small amounts of capital can greatly influence the price.
In principle, that could also be part of the explanation for bitcoin’s volatility at certain times.
Source: https://bitcoinmagazine.nl/nieuws/nyse-wil-geinspireerd-door-bitcoin-24-7-handel-in-aandelen
