SEC Chair Says US Is Preparing for 24-Hour Stock Trading to Attract Global Investors

• The SEC said it is pursuing an overhaul of securities-market systems to enable 24-hour trading in US stocks.
• It said longer trading hours could help investors respond faster to the market while expanding participation by global investors and boosting liquidity.
• Atkins said tokenized securities and blockchain could improve the efficiency of 24-hour trading and reduce the risk of naked short selling.

Forecast Trend Report by Period

The US Securities and Exchange Commission is pursuing an overhaul of market infrastructure to allow 24-hour trading in US stocks.

At an SEC roundtable on September 18, Chair Paul Atkins said the agency is preparing for 24-hour trading in the US stock market He said longer trading hours could help investors respond more quickly to market developments while expanding participation and liquidity from global investors

Atkins said the Depository Trust & Clearing Corp. has already put in place a five-days-a-week, 23-hours-a-day trading system, known as 23×5, to support clearing and settlement.

The US financial industry has also recently established price fluctuation limits for overnight trading and risk-management standards for exchanges. The Securities Information Processor, or SIP, is also making preparations to provide price data during overnight hours.

Atkins said tokenized securities could help improve the efficiency of 24-hour trading. Using blockchain, the securities industry can track and manage assets and available trading inventory in real time, he said.

He added that 24-hour trading could also reduce the risk of naked short selling, in which shares are sold without first being secured.

Source: en.bloomingbit.io