The FIX Trading Community has launched a new industry working group to examine the opportunities and challenges surrounding 24-hour trading in US equities, as industry momentum builds toward round-the-clock market access.
The initiative comes as several alternative trading systems (ATS) have begun to offer overnight access to US markets, and other major market infrastructure providers continue plans to extend their operating hours.
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The move follows the NYSE’s push to secure regulatory approval for a tokenised-securities platform that would support 24/7 equities trading, alongside other venues moving toward extended hours, raising new questions over market structure and regulation.
Although according to DTCC and EY data, overnight trading currently accounts for just 0.1% of total US equity market volume, participation from institutional investors – and retail – is rising.
Specifically, industry estimates suggest this could grow to between 1% and 10% of total volume by 2028.
Jim Kaye, executive director of FIX, said the working group will explore the development of equity trading outside regular US hours, the evolving role of broker-dealers and ATSs, and the implications of expanded access for global investors.
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FIX has confirmed that the group will also focus on practical and regulatory hurdles, including reduced liquidity and wider spreads during overnight sessions and how existing regulatory frameworks apply outside standard US trading hours.
Additionally, industry onlookers are set to examine in detail how 24-hour trading can be integrated into established institutional workflows.
“We’ve seen growing interest in 24-hour trading for some time, but we’re at a tipping point now,” affirmed Kaye.
“Exchanges including NYSE, CBOE and NASDAQ, as well as the Securities Information Processors and the Depository Trust & Clearing Corporation (DTCC) have all recently announced plans to extend their hours to offer 24/5 trading. This is the right time to rally the industry to ensure we’re ready for the next stage of overnight trading.”