NYSE Mulling Crypto-Like Round The Clock Trading: Report

The New York Stock Exchange, NYSE is mulling adopting the cryptocurrency market template of round-the-clock trading of stocks. The decision is dependent on the outcome of an ongoing poll of market participants on the merits and demerits of 24-hour trading even as regulators scrutinize an application for the first 24/7 bourse.

Complications of the NYSE Trading Bid

According to the Financial Times, the survey by the NYSE is not a management decision but a test run by its data analytics team. It is significant nonetheless as it indicates interest by investors to trade the likes of the world’s third largest company, Nvidia or Apple overnight between 8 pm and 4 am Eastern Time.

The NYSE’s survey inquired from respondents whether they favored continuous trading on the weekends in addition to the usual Monday – Friday trading activity. It also asked what protective measures should be instituted to shield investors from price volatility and their thoughts on overnight staffing arrangements.

The ongoing poll coincides with 24 Exchange seeking applications from the Securities and Exchange Commission (SEC) to create the first 24-hour exchange. 24 Exchange is a start-up supported by Steve Cohen’s Point72 hedge fund and it is the second attempt for 24X at the request after it retracted a previous proposal last year due to technical and operational challenges.

The SEC, two months ago announced filing for modification of rules to allow for trading of products like Bitwise Bitcoin ETF, and Grayscale Bitcoin Trust, amongst others on the exchange. Some analysts believe that 24-hour trading at the NYSE will not be a bad idea.

Finance Professor Wants Market To Decide

James Angel, a finance Professor at Georgetown University, who filed a letter supporting 24X’s plan wondered about the volume of trade at odd hours of the night but insisted the SEC should not decline the request on such grounds.

“I have no idea how much volume they’re going to be doing in the middle of the night. But it’s really not up to the SEC to decide whether it’s commercially viable or not. I’m in favour of letting the market decide. If it succeeds, we’re all better off, and if it doesn’t, well, the exchange’s investors lost” he said.

An analyst and institutional broker acknowledged that while there is a demand for round-the-clock trading, it comes from outside of the marketplace. He sued for caution as staffing arrangements could pose a tough challenge in a very busy financial world.