This is big news for investors.
U.S. regulators have approved the launch of a 24-hour stock exchange, aimed at enhancing overnight liquidity for traders. The 24X National Exchange, approved by the U.S. Securities and Exchange Commission (SEC), will be the first U.S. exchange to offer trading for U.S. securities 23 hours a day on weekdays, the company announced on November 27.
The exchange will roll out in two phases. Initially, starting in the second half of 2025, it will operate from 4 a.m. to 7 p.m. EDT on weekdays. In the second phase, it will extend trading hours from 8 p.m. EDT on Sundays through 7 p.m. EDT on Fridays, with a one-hour pause each day for system maintenance and updates.
Dmitri Galinov, CEO of 24 Exchange, expressed excitement about the SEC approval, highlighting the opportunity to build a customer-focused exchange that responds quickly to market demands. He pointed out that traders often face risks when markets close in their region, especially during unforeseen events, leaving them unable to exit positions. The 24X National Exchange is designed to address this issue by enabling continuous trading and improving liquidity, particularly by tapping into the Asia-Pacific region’s trading volumes.
While the SEC has given the green light for the exchange, additional filings and procedures are still needed before full 24-hour trading can begin.
However, the approval has faced criticism from some quarters. Benjamin Schiffrin, a director at market advocacy group Better Markets, warned that the extended trading hours could harm retail investors. He argued that the overnight market would have fewer buyers and sellers, leading to more volatile and less favorable prices. Schiffrin also cautioned that trading during off-hours could encourage riskier behavior, similar to the impacts seen in industries like sports betting.
Research from experts at the University of Washington and Stanford University, submitted to the SEC, suggested that longer trading hours could lead to poorer outcomes for retail investors. They noted that pre-market and post-market sessions often have low liquidity, high volatility, and less efficient pricing, which could negatively affect investors.
The approval of 24X National Exchange coincides with plans from the New York Stock Exchange, which announced in October that it would extend trading hours at its Arca equities exchange to 22 hours a day, from 1:30 a.m. to 11:30 p.m. EDT.
