SEC Explores Crypto-Style 24/7 Stock Trading in Upcoming Roundtable With NYSE and Nasdaq

The US Securities and Exchange Commission (SEC) has announced a September 17 Washington, DC meeting to discuss a crypto-mimicking round-the-clock trading of US stocks. 

Per the agency, panelists will include several prominent players in legacy finance, including Citi, BlackRock, Nasdaq, Charles Schwab, Jane Street, and the New York Stock Exchange (NYSE).

SEC meeting on crypto-adjacent 24/7 stock trading

Items on the agenda include exchange readiness, system resiliency and market impacts. The group will also discuss the challenges of 24/7 trading, including surveillance, cybersecurity, liquidity and investor protections.

Notably, the event will be open to the public via live webcast. It has been arranged in response to heightened demand for this crypto-like feature by both local and foreign investors. 

SEC Chairman Paul Atkins noted the significance of full-time trading in attracting global liquidity, while stressing the importance of safety rails.

On X, several users were quick to point out that overnight trading would open the market to manipulation. Others, however, hailed the idea as monumental, seeing as it would lift the “closing hours” restrictions that have been the mark of traditional finance.

Institutional adoption of 24/7 trading

Traditional finance giants are now racing to build out the blockchain infrastructure that supports the instant settlements and tokenized collateral that are characteristic of continuous markets.

The NYSE, Nasdaq and the London Stock Exchange Group (LSEG) have all planned for this, with support from mega banks like Citigroup and BNY Mellon. 

Meanwhile, early pioneer Robinhood and Charles Schwab are scaling up from 24/5 to 24/7 trading.