‘Instant settlement’: Wall Street intends to stay open around the clock
Wall Street is moving towards 24/7 trading with a new platform offering “instant settlement,” potentially revolutionizing US stock markets.Summary
The New York Stock Exchange (NYSE) is developing a platform for round-the-clock trading with “instant settlement,” a move that could render traditional closing and opening bells obsolete. This system will utilize digital tokens representing shares, and NASDAQ may follow suit. While off-hours trading has been increasing—reaching an average of US$61 billion daily in 2024—some experts, like Steve Hanke of Johns Hopkins University, question the benefits, citing limited market-moving events outside of regular hours. However, the primary advantage lies in reducing the settlement window, potentially giving the NYSE a competitive edge. The change could attract smaller investors, non-US holders (nearly 18% of US shares in 2024), and those accustomed to the continuous trading of cryptocurrencies. Despite this, most institutional investors are unlikely to shift from traditional banking hours, as banks remain largely closed on weekends.
(Source：Straitstimes)