Do we really need 24 hour stock trading? A startup trading platform called 24 Exchange is seeking approval from the Securities and Exchange Commission to launch America’s first stock exchange that would operate 24 hours a day, including weekends and holidays. The startup, led by an ecommerce maven named Dmitry Galinov, intends to operate continuously, much like the forex and cryptocurrency markets. The exchange would be managed by a US subsidiary of 24 Exchange Bermuda Ltd, incorporated in Bermuda.
Most U.S. stock trading takes place between 9:30 a.m. and 4:00 p.m. Eastern Time, anchored by the workday on Wall Street, the traditional epicenter of American commerce. Exchanges have been considering the idea of 24-hour trading ever since the internet created this capability decades ago. And the New York Stock Exchange offers pre-trade and post-trade sessions that effectively extend trading hours from 4 a.m. to 8 p.m. ET.
But the idea did not take off. There is a market-based reason for this. This raises concerns about the liquidity of the market. Galinov acknowledged that prices are likely to be more volatile in day-to-day trading.
For a certain segment of investors who see the markets as a newer version of internet poker, volatility can be a feature, not a bug. And nighttime hours are a natural fit. After you beat your third Red Bull at 3 a.m., you can play Call Of Duty or trade GameStop shares. So so.
Galinov said The Wall Street Journal there is a growing market for 24-hour trading, fueled by international investors as well as Americans who may want to adjust their holdings to respond to big news that could emerge over the weekend.
But for every hobbyist who wants to spend hours after work closing deals, there are probably dozens who would rather not wake up one morning to find their retirement wallet filled with deals overnight. Everyone needs to get some sleep.
And this truth invites us to consider what our society has learned from other 24 hour experiences. Can we really point a finger at one part of our life that’s been going on around the clock (network TV, cable news, social media, Walmart) and say we’ll be better off for it? 24 Is the Exchange trying to become the Waffle House of investing? Now we admit that in our time we hit our share of Waffle Houses in the wee hours of the morning and were grateful for sustenance back then, but a late night business model is not necessarily suitable. in the world. finances.
Ironically, on the same day the Newspaper disseminated information about the 24 Exchange app, it also published a burnout think tank citing a statistic that nearly 90% of workers reported experiencing burnout in the past year.
Unlimited access is not necessarily a good thing.