Background
As we all know, the traditional trading hours of the stock market have clear boundaries, which is in stark contrast to the uninterrupted trading provided by the cryptocurrency market. The continuous trading ability of the cryptocurrency market has attracted global investors and posed a challenge to traditional exchanges. The New York Stock Exchange (NYSE) is considering expanding its trading hours to meet the market's demand for more flexible trading hours. It is reported that the plan is to allow the exchange to meet 24/7 stock trading operations to maintain its competitiveness with cryptocurrency trading platforms.
NYSE's market research reflects the strong interest in 24-hour trading, which aims to connect with global financial markets and attract more investors, including those in Asia. Although 24-hour trading faces challenges such as technology, regulation and market volatility, its potential advantage is that it can provide a more consistent global trading experience while responding to investors' expectations for 24-hour market access.
Feasibility Market Research on New York Stock Exchange
The New York Stock Exchange (NYSE) is conducting a survey of market participants through its data analytics team on 24/7 trading to explore potential demand and market opinions on the introduction of a 24/7 trading model. The purpose of this survey is to understand the industry's views on extending trading hours and the potential impact of 24/7 trading on improving market liquidity and trading efficiency. The survey covers several key areas, including whether market participants support trading outside of weekends or regular working days, and how to deal with price fluctuations that may occur during overnight trading.
In addition, the survey aims to evaluate investor protection measures to ensure that investors' interests are properly protected under the new trading model. A core topic in the market research conducted by NYSE is why not focus on the trading market during regular hours instead of spending time on overnight trading. This discussion comes at a time when the startup 24 Exchange has submitted its first (24-hour trading platform) application to the SEC. This exploratory market research highlights the market's demand for flexibility in trading hours and the consideration of the necessary reform of the existing trading model.
Challenges and opportunities of 24-hour trading
The New York Stock Exchange (NYSE) needs to overcome a series of issues in the process of introducing and promoting round-the-clock trading, such as challenges in technology, market structure and regulation.
From a technical perspective, the platform must ensure that its transactions are sufficiently stable and secure to cope with the continuous operational pressure brought by round-the-clock trading.
From a structural perspective, all-weather trading may also bring some structural changes to the market, such as the need for human resource allocation for night trading, the management of settlement risks, and measures to strengthen investor protection. There is also a view that institutions are not very interested in overnight trading, indicating that there may be some differences in the acceptance of video.
At the same time, the regulatory review process is also a major challenge, as any changes to trading models require approval from the U.S. Securities and Exchange Commission (SEC), which involves both the modification of existing rules and the formulation of new rules.
However, while there are still challenges to around-the-clock trading, it also presents huge growth opportunities for the New York Stock Exchange. Because it is expected to significantly increase market liquidity, narrow trading spreads, and attract a wider investor base, especially participants in Asian markets. It can also provide investors with more flexible trading sessions to meet the needs of the global market and enhance the competitiveness of the New York Stock Exchange in the global financial market.
In addition, the implementation of round-the-clock trading may become an important opportunity to promote financial innovation and the development of market services, and open up new paths for the internationalization and diversification of financial markets.
Impact on the market and investors
By extending trading hours, round-the-clock trading has the potential to significantly increase market liquidity and attract more investors to participate at any time. However, this model may also bring about greater price volatility, especially during non-traditional trading periods where regulation and surveillance may be weaker. In addition, all-weather trading needs to take into account various factors such as regulation, technology and market participant behavior, and be able to respond in a timely manner and make appropriate adjustments when dealing with extreme situations that change all the time.
For retail investors, 24/7 trading provides more trading flexibility, allowing them to respond to market events when traditional markets are closed. However, this also requires retail investors to devote more time and energy to pay attention to market dynamics, and may require more complex risk management strategies.
For institutional investors, 24/7 trading may require them to reconsider their trading strategies and market operation models to adapt to the new normal of the market.
Development prospects and future outlook
If the NYSE 24/7 trading model can be approved and implemented, combined with the access and support of blockchain technology, it may completely change the structure of the traditional financial market. Due to its decentralized, transparent, secure and tamper-proof characteristics, blockchain technology provides a technical foundation and trust mechanism for 24/7 trading. Under this model, market liquidity is greatly improved. At the same time, global investors, including Asian market participants, can participate in the market uninterruptedly, further promoting the globalization of the market.
However, the implementation of this series of measures still has a long way to go. It not only requires regulators to update the regulatory framework as soon as possible, but also requires cooperation among financial institutions, technology providers and market participants to ensure that the financial infrastructure can support uninterrupted normal trading activities to ensure market stability and security.
I believe that with the globalization of financial markets and the continuous advancement of technology, all-weather trading is expected to become a new trend in the development of the financial industry, pushing the traditional financial model towards a more efficient, flexible and secure direction. The application of blockchain technology may also guide the financial market to transition to a more open and inclusive ecosystem, and is expected to enable the traditional financial trading market to form a more open, automated and intelligent ecosystem, aiming to bring revolutionary financial changes to the financial industry. #NYSE #全天候交易
