The Securities and Exchange Commission (SEC) has approved the first 24-hour stock exchange in the U.S., marking a transformative step in securities trading to meet retail investor demand for round-the-clock market access.

  • 24 Exchange, backed by Steve Cohen’s Point72 Ventures, received SEC approval after its second application attempt.
  • The exchange will roll out in two phases:
    1. Initial Launch: Regular trading hours.
    2. Expansion: Overnight sessions from Sunday through Friday, with a daily one-hour pause for software updates.
  • Follows similar moves in the market:
    • Robinhood: Offers 24-hour trading on over 1,000 tickers.
    • Charles Schwab: Plans to enable 24-hour trading for S&P 500 and Nasdaq-100 stocks by 2025.
    • NYSE Arca: Filed to extend trading to 22 hours daily.

Significance

  • This shift aligns U.S. equity trading closer to cryptocurrency and forex markets, which already operate continuously.
  • Aims to reduce risks associated with market closures in specific geographic locations, enhancing accessibility for global traders.

Background

  • 24 Exchange pivoted from cryptocurrency trading in 2023, ceasing its spot crypto products after regulatory scrutiny and the FTX collapse.
  • CEO Dmitri Galinov emphasized the benefits of 24-hour trading for global traders who face limited access during traditional U.S. market hours.

The SEC’s approval signals an evolution in trading norms, potentially reshaping how markets operate and broadening access for retail investors. With momentum from major platforms like Robinhood and Charles Schwab, 24-hour trading may become a standard feature of U.S. equity markets.