The launch of the 24X National Exchange promises nearly continuous stock trading, altering the landscape of U.S. securities trading while sparking a debate on investor safety.
This will change how people invest and trade.
At a Glance
- 24 Exchange to launch in 2025 with almost 24-hour trading capabilities.
- Initial trading to run from 4:00 a.m. ET to 7:00 p.m. ET with later overnight extension.
- SEC approval encourages access to Asia-Pacific markets but raises investor safety concerns.
- Market risks include lower liquidity during after-hours and increased volatility.
24X National Exchange: A New Era in Trading
The 24X National Exchange, set to commence operations in 2025, is designed to provide nearly continuous trading, pending regulatory completion.
This ambitious move reflects a growing trend of extended trading hours, driven by the global demand for seamless trading akin to cryptocurrencies. Based in Stamford, Connecticut, 24 Exchange aims to offer an innovative model of trading that caters especially to the needs of the Asia-Pacific markets.
Following SEC approval, the 24X National Exchange plans to roll out in stages, starting with weekday trading from 4:00 a.m. ET to 7:00 p.m. ET. Full 24-hour trading will require further regulatory steps. Dmitri Galinov, the CEO and founder of the Exchange, described the approval as a testament to years of dedicated efforts from his team. “The SEC’s approval of our new exchange is a thrilling development that the 24X team has been working toward for many years,” said Dmitri Galinov, the founder and CEO of 24X National Exchange.
✅ One step closer to a tokenized stock market https://t.co/C9sSyee0gy
— Megan Kaspar (@Megan_Kaspar) December 1, 2024
Investor Safety: A Growing Concern
While the extended trading hours on the 24X Exchange seek to promote flexibility and global market access, concerns about increased market volatility and diminished liquidity have been widely discussed online.
Critics have voiced their apprehensions over how retail investors might face less favorable conditions during after-hours sessions. As Benjamin Schiffrin from Better Markets explained, “Retail investors trading during an overnight session will be trading in a market where there are few buyers and sellers, and where prices will be more volatile and less favorable than during normal hours.”
24X National Exchange LLC has an application with the @SECGov to operate a trading platform 23 hours per day, seven days per week. We have serious concerns with how this type of trading would impact retail investors: https://t.co/mRHZZrPGUJ pic.twitter.com/RcfPLLjK3D
— Better Markets (@BetterMarkets) June 28, 2024
The trading community and regulators continue to debate the pros and cons of nearly continuous trading. Proponents argue that the ability to react to global news events in real-time is invaluable. However, concerns about riskier nighttime trading behaviors—as potentially akin to gambling—pose new challenges. Despite these worries, initiatives like the 24X National Exchange reflect the evolving landscape of securities trading, driving toward a future where traders can engage whenever necessity demands.
“With this historic SEC approval in place, we will build and operate a customer-driven exchange that can rapidly align with market demands and adapt quickly to client feedback,” Galinov noted.
What do you think?
