The exchange will allow investors to get out of risky positions beyond official market timings, says 24X National Exchange.
U.S. regulators have approved a nonstop stock exchange to begin operations in the country, which is expected to boost overnight liquidity available to traders.
“24 Exchange announced today that it has received approval from the U.S. Securities and Exchange Commission to operate 24X National Exchange as the first national securities exchange in the U.S. that allows trading of U.S. securities 23 hours each workday,” the company said in a Nov. 27 statement.
The exchange will be launched in two steps. In the first stage, it will operate between 4 a.m. ET and 7 p.m. ET on weekdays beginning in the second half of next year.
In the second stage, trading will be offered between 8 p.m. ET on Sunday through 7 p.m. ET on Friday. Every trading day will have a one-hour operational pause aimed at allowing the company to conduct tests and upgrades.
Dmitri Galinov, the founder and CEO of 24 Exchange, called the SEC approval a “thrilling development.”
“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,” he said.
Galinov pointed out that traders are often at risk when markets remain closed at their geographical location. Traders are not able to quit positions when major and sudden events unfold.
The 24X National Exchange seeks to solve this issue by offering around-the-clock trading, he noted. Initially, the exchange will seek to boost overnight liquidity for American equities by tapping into trading volumes from the Asia Pacific region.
Some procedures are pending, including making additional filings with the SEC, before the 24-hour trading is activated, the company said.
Benjamin Schiffrin, the director of securities policy at market advocacy group Better Markets, criticized the SEC approval of 24X National Exchange, warning that this harms investors and damages markets.
