First 23-hour US Securities Exchange Approved by SEC

​The Securities and Exchange Commission (SEC) has granted approval for 24X National Exchange to begin operations, allowing it to offer trading sessions that extend throughout the U.S. daytime and into the night. This development, announced in an SEC notice on Wednesday, is a significant move toward around-the-clock trading, with plans to incorporate a session that runs from 8 p.m. to 4 a.m. after meeting certain data criteria.

Dmitri Galinov, the founder and CEO of 24X, expressed enthusiasm about the SEC's decision, stating that the exchange aims to address the risks traders face when markets are closed in their regions. The initial trading hours will start at 4 a.m. and conclude at 7 p.m., with a one-hour break beginning at 7 p.m. This schedule allows for a continuous trading experience from Sunday evening through Friday evening.

The push for nonstop trading has generated mixed reactions on Wall Street. Proponents argue that investors need the flexibility to react to news events at any time, while critics warn that extended hours could lead to decreased trading volume and less accurate pricing due to the potential for lower liquidity.

The rise of overnight trading has been noted since the pandemic, with platforms like Robinhood and Interactive Brokers allowing customers to trade U.S. stocks outside traditional hours. In response to the changing landscape, the New York Stock Exchange has also filed for approval to extend its trading hours to 22 hours on weekdays.

Consumer advocacy group Better Markets has criticized the SEC's approval of 24X, raising concerns about the implications for retail investors. They argue that trading during overnight hours could expose investors to higher volatility and less favorable pricing, ultimately leading to losses compared to trades executed during standard market hours.

As 24X prepares to launch, the implications of its extended trading sessions will be closely watched, particularly in contrast to traditional trading practices that emphasize regular hours and established liquidity. The evolving trading environment may present both opportunities and challenges for investors navigating these new dynamics.