A startup wants to open a 24/7 stock exchange
For more accurate and insightful business and economic news, subscribe to
The other side of everyday life bulletin. It’s completely free and we guarantee that you will learn something new every day.
Do you know it’s 2 a.m. and you crave Domino’s? Not the pizza, the broth.
If you fit this weird but growing demographic, you’re in luck. The 24 Exchange startup trading platform announced Tuesday that it has asked the SEC to launch a U.S. stock exchange open all day, every day. Even at Christmas.
Another way to ignore the family on Thanksgiving
In keeping with the working hours of Wall Street professionals, almost all U.S. stock trading has long occurred between 9:30 a.m. and 4:00 p.m. EST, weekdays only, and never holidays.
But 24 Exchange wants to open an exchange that, like cryptocurrency markets or Denny’s, never closes. It is designed to reflect how retail investing has shaken the market:
- In June, retail investors – who trade at their own pace, whether off or during working hours – bought $ 28 billion in stocks and exchange-traded funds, the most in a month since 2014.
- More than 10 million new brokerage accounts were opened in the first half of 2021, the same amount as in 2020.
Bad timing: Investors can currently trade as early as 4 a.m. or until 8 p.m. EST via the pre-trade and post-trade sessions of the New York Stock Exchange. But because there is less money changing hands, these sessions suffer from severe price volatility – and experts say 24 Exchange could face the same issues. “Personally, I would love to have 24-hour exchanges,” James Angel, a finance professor at Georgetown. Recount The the Wall Street newspaper. “But I doubt there is much cash.”
Piece of cake : 24 Exchange is also asking the SEC – which likely won’t make a decision on its application until next year – if its exchange can allow split trade or share fragment trading as little as 1 / 1000th of a share. Now try asking Domino’s for a 1 / 1000th slice of pizza.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.