The podcast discusses the growing demand for 24-hour stock market trading, the challenges and benefits of around-the-clock trading on platforms like Robinhood, and the implications of overnight trading on Wall Street. It also touches on the resistance to change among market participants and the shifting landscape of trading post-COVID-19.
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24-hour trading challenges traditional stock market hours due to increased demand and evolving landscape.
Potential Shift to 24-Hour Trading in US Stock Market
24-hour trading in U.S. stocks is gaining momentum, challenging the traditional trading hours that have been in place for over a century. The prospect of around-the-clock trading is driven by the evolving landscape, including the increased demand and the emergence of cryptocurrencies. With notable players exploring 24-hour trading, such as hedge fund billionaire Steve Cohen backing 24 Exchange, potential shifts in market operations raise questions about infrastructure and regulatory adaptations.
Current Stock Exchange Trading Hours Conundrum
The existing trading hours of stock exchanges originate from a bygone era when physical trading limitations dictated the hours of operation. Although electronic trading dominates today, these traditional hours persist to provide structure and order in trading activities. By restricting trading to specific hours, market participants are compelled to interact more efficiently during concentrated periods, enhancing competition and price accuracy.
Challenges and Considerations of 24-Hour Trading Implementation
While overnight trading options exist with platforms like Robinhood, transitioning to full 24-hour trading requires addressing fundamental changes in market infrastructure. Key considerations include demand assessment, middleman issues, regulatory compliance, and maintaining a level playing field to prevent market manipulation. Despite the appeal of continuous trading, concerns about market stability, technological glitches, and regulatory oversight persist in shaping the future trading landscape.
There is a growing push from retail traders, international investors, and a few big hedge funds to do something once unthinkable: keep stock markets open for 24 hours a day, 7 days a week. But when do traders sleep if Wall Street never shuts?
On today’s Big Take podcast, Bloomberg finance reporter Katherine Doherty joins host Sarah Holder to break down what’s behind the growing demand for after-hours trading on platforms like Robinhood, whether regulators will ever approve such a move, and what happens to the opening bell if the New York Stock Exchange never closes.