Finance04 April, 20261 min read
US Exchanges Push 24/7 Trading to End After-Hours Manipulation
U.S. exchanges pursue 24/7 trading to curb after-hours manipulation and improve price discovery. NYSE partners with BlackRock-backed Securitize to build 24/7 tokenized securities.
Traders Benefit, Middlemen Lose
Major US stock exchanges are racing to introduce near 24/7 trading by late 2026. Mati Greenspan alleged brokers coordinate to decide the first tradable price after closures. Whalesbook explained the shift as a strategic effort to gain market share and improve price discovery.
Liquidity Challenges and Regulation
The NYSE has surveyed market participants, but results remain unpublished. A portfolio manager expressed concern that 24/7 trading could bring more manipulation problems.
Lower transaction volumes cause bid-ask spreads to widen and intensify volatility. Academic studies and SEC enforcement actions have found price discovery less efficient outside regular hours.
Investor Demand vs. Operational Costs
The DTCC is extending clearing hours to support 24/5 trading. Exchanges face balancing investor demand with operational costs and market integrity. More companies go private than public, reducing market depth.