SEC approves first round-the-clock US stock exchange, paving the way for near-continuous trading
The US Securities and Exchange Commission has approved the nation’s first round-the-clock stock exchange, signalling a major shift in traditional trading hours.
The start-up 24 National Exchange — backed by billionaire hedge fund manager Steve Cohen’s Point72 Ventures — received regulatory approval for a two-phase implementation plan focused on the trading of US equities 23 hours each workday.
A one-hour operational pause will take place during each trading day to accommodate routine software upgrades and functionality testing.
Near-continuous market
The first stage will open in late 2025 and initially operate during regular weekday market hours before expanding into second-stage overnight sessions from Sunday through Thursday between 8pm and 4am (New York time), once specific data requirements are met.
The new service will enable retail and institutional customers anywhere in the world to trade in US equities via broker-dealers who are approved members of 24 National Exchange.
The schedule would effectively allow trading to run from Sunday evening through to Friday evening, creating a virtually continuous market.
The move responds to growing retail investor demand for extended trading hours, particularly from traders accustomed to 24/7 cryptocurrency markets.
It follows an application filed by the New York Stock Exchange in October to extend its trading hours to 22 hours per day and reflects growing competition in the securities space.
‘Thrilling development’
24 National Exchange chief executive officer and founder Dmitri Galinov welcomed the SEC approval.
“This is a thrilling development that our team has been working toward for many years,” he said.
“Traders are most at risk when the market is closed in their geographic location and we will seek to alleviate this problem by facilitating around-the-clock US equities trading for broker-dealers and their institutional and retail customers.”
The exchange will focus on capturing growing demand in the Asia-Pacific region for overnight liquidity in US equities using a proven, state-of-the-art technology platform provided by MEMX Technologies.
Mixed reactions
The initiative has sparked mixed reactions across Wall Street.
Supporters argue that it allows investors to respond quickly to market-moving news outside standard hours, while critics warn of risks such as reduced trading volumes during off-hours that could result in less accurate pricing.
One US market specialist has criticised the idea, suggesting that SEC approval at a time when liquidity is low and pricing is poor will harm investors and damage markets.
“Overnight trading will only make the problems that already exist in our fragmented securities markets worse and introduce new risks for retail investors,” they said.
“Retail investors trading during an overnight session will only get the best prices in a bad market, thereby losing money if they had traded during normal business hours.”
Volatility concerns
Concerns were also raised about potential volatility in overnight trading.
“Even small-volume trades could disproportionately affect prices, creating risks for institutional investors managing large portfolios.”
Other experts have highlighted the operational and logistical demands of round-the-clock trading, including staffing for overnight sessions and the technical infrastructure required to support continuous operations.