SEC Approves 24X National Exchange for 24-Hour Trading

In a remarkable shift in stock trading, 24X National Exchange, a startup backed by Steve Cohen’s Point72 Ventures fund, secured approval from the U.S. Securities and Exchange Commission (SEC). This stock exchange will operate nearly around the clock, with plans to offer trading sessions spanning 23 hours daily, five days a week, and a one-hour break starting at 7:00 p.m., according to an SEC notice.

How Will 24X National Exchange Operate?

Initially, 24X will run three trading sessions, beginning at 4:00 a.m. and ending at 7:00 p.m. New York time. The platform intends to extend its operations to overnight trading, from 8:00 p.m. to 4:00 a.m., once specific data requirements are met. This schedule would effectively allow trading to run from Sunday evening through Friday evening, creating a virtually continuous market.

Wall Street Is Split Over the Approval for the Exchange

This proposal has sparked mixed reactions across Wall Street. Proponents of nonstop trading argue that extended hours will allow investors to react swiftly to breaking news outside of U.S. market hours. However, critics warn that the quality of trading might suffer from lower volume, resulting in less accurate pricing.

Dmitri Galinov, founder and CEO of 24X National Exchange, commented, “The SEC’s approval of our new exchange is a thrilling development that the 24X team has been working toward for many years.”

Overnight trading has gained momentum during the pandemic, according to Bloomberg. Platforms like Robinhood (HOOD) and Interactive Brokers (IBKR) have already enabled 24/5 stock trading through alternative trading systems like Blue Ocean.

Which Broker Is the Best for Trading?

For investors exploring brokerages that could benefit from the opening of this exchange, we have rounded the stocks that Wall Street analysts are bullish or cautiously optimistic about, using the TipRanks Stocks Comparison tool.