Thoughts on the NYSE Going 24/7

NYSE is testing views on "round-the-clock trading" - staying open 24/7. Interested in hearing opinions on the potential change from you all in the industry. How would this affect your job and the hours you work?

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I think there are 3 common concerns about this that also came up in trading firms for covering crypto which is 24/7

(1) low liquidity outside regular hours. I think the current extended hours US stock trading is already rather illiquid and I don't think further extensions are likely to help at least in the short term. This also means flash crashes/manipulation are a concern.

(2) many systems require/assume a maintenance window. US futures typically trade something like 23/5 and that small amount of downtown per day is helpful for updating systems etc. FX is closer to 24/5 although with low volumes during the maintenance window and a few other hours.

(3) staff don't work on weekends and trading crypto on weekends often meant hiring dedicated support staff for this which is probably somewhat more involved for US stocks as they have quite complicated back office plumbing in addition to staff to monitor the trading systems. Even for Asian/European hours where most firms have staff that can watch US futures I don't think many Asia/Europe based staff will have the required regulatory licenses  to trade US stocks although that is potentially solvable.

Overall I think if there was real market demand for trading around the clock 23/5 would be pretty doable for most big firms with some work but 24/7 may require too much especially if volumes are low although crypto volumes are pretty decent on weekends so eventually stock trading volumes might shift as well over time if this does happen.

 

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