Starting in 2025, the stock market will be redefined with the launch of the 24X National Exchange. With 23 hours of trading time daily, the exchange aims to provide greater accessibility and flexibility to global investors. But how does this change the market and what does it mean for private investors?
• 24X National Exchange from 2025 as the first national exchange with 23 hours of trading time per day
• Initial trading will be from 4:00 a.m. to 7:00 p.m. (ET).
• Reduced liquidity and greater price volatility could result in adverse conditions
A stock exchange with disruptive potential
The 24X National Exchange, led by Dmitri Galinov and backed by Steven A. Cohen’s Point72 Ventures, has received the green light from the US Securities and Exchange Commission (SEC). As the first fully regulated exchange in the US, it will enable near-continuous trading. The introduction will take place gradually. Initially, trading hours will be offered from 4:00 a.m. to 7:00 p.m. (ET), before a 23-hour per day model, from Sunday evening to Friday evening, will be implemented in 2025. The aim is to address a larger target group, particularly from Asia and Europe, through the extended trading hours, according to CNBC.
Global access and technological innovation
The extended trading hours are intended to primarily benefit investors in Asia who have previously been disadvantaged by the time zone difference. As Markets Media reports, the exchange offers state-of-the-art infrastructure that provides fast and secure access to US markets. This reflects the growing need to adapt trading hours to the dynamics of the global market. According to Investopedia, near 24/7 trading allows for faster response to news and events, similar to what is already common in forex and crypto trading.
Opportunities and risks for investors
With the expanded trading model, 24X wants to open up new opportunities for both institutional and private investors. However, retail investors could face challenges. The lower liquidity during night times poses the risk of greater price fluctuations. Additionally, wider bid-ask spreads may result in higher costs.
Benjamin Schiffrin of Better Markets warns in an International Business Times article that retail investors can often receive worse prices during extended trading hours because professional traders operate with better tools and strategies.
Competitive pressure for traditional stock exchanges
The introduction of the 24X National Exchange poses new challenges for established exchanges such as the NYSE and NASDAQ. They have so far only offered limited extended trading hours and could be forced to rethink their strategies as a result of the new model. At the same time, brokers like Charles Schwab are already showing signs of gradually extending their trading hours in order to remain competitive.
Editorial team finanzen.net
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