Here is information from Financial Times : it is reported that the New York Stock Exchange (NYSE) is currently sounding the authorities on the idea of allowing continuous trading, twenty-four hours a day, and thus being able to trade shares permanently . A project that, if it comes to fruition, would be a bit of a revolution: a stock market has never been open day and night. According to the British financial daily, dated April 22, a study launched by the NYSE showed a growing interest in the trading of securities such as Nvidia, the giant of artificial intelligence, or even Apple, between 8 pm and 4 am on the Eastern United States.
Several factors explain such an approach. First, it comes at a time when America’s stock market watchdog, the Securities and Exchange Commission (SEC), is investigating a request by startup 24 Exchange (24X) to launch the first 24-hour stock exchange launched. In addition, Christopher Dembik, from the Pictet bank, contributes. “so the NYSE is trying to accommodate the interest of individuals in the equity markets since the start of Covid, a phenomenon observed in France but especially across the Atlantic. Some American brokers already offer offers that allow stock market orders to be placed at any time, at an estimated value with calculations generating the dividend if it happened. In addition, there are already other markets that are open continuously, such as the cryptocurrencies market or the foreign exchange market, which has been operating seven days a week and twenty four hours a day since the 1970s .
Human and financial resources
However, the relevance of this project raises questions. First, logically. Extension of hours also means extension of supervision and control of exchanges (monitoring financial communications of companies, monitoring lack of insider trading, etc.). In other words, this requires additional staff and financial resources.
“It’s the other problem notes Christopher Dembik, it is liquidity. There is already very little trading today at certain times on the equity markets, and also very little trading on the market for small listed companies. Increasing the opening amplitude will not change this situation. »
Minimize schedules for efficiency
This economist’s conclusion is clear: “For the efficiency of exchanges, hours should be reduced on the other hand. This is indeed the topic on the agenda among regulators, in the United States as in France and elsewhere in Europe. So this request from the NYSE has little chance of success. »
Analysis shared by the financial media age, which recalls that in 2020 the London Stock Exchange had already considered reducing opening hours, currently from 8 am to 4:30 pm, to further focus the interest of investors but also, more unexpectedly, “to give women access to trade professions”.
2024-05-11 14:21:10
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