New Delhi: The New York Stock Exchange (NYSE) is planning to extend its trading hours to meet the growing interest in US stocks. NYSE wants trading to be available 22 hours a day on its Arca platform. But, the approval of the market regulator SEC is still awaited to implement this proposal. NYSE is part of the intercontinental market. It has announced that trading hours for its fully electronic Arca Markets will be extended to 1:30 am to 11:30 pm (Eastern Time). This change will be applicable on all days except holidays. This has been told in a report of Financial Times.
Change possible from 2025
This proposed expansion could begin in 2025. It is yet to get approval from the Securities and Exchange Commission. This comes at a time when no-latency retail trading options from brokerage platforms like Robinhood and Interactive Brokers are growing in popularity.
‘As the custodian of the US capital markets, the NYSE makes exchange-based trading for our US-listed companies and funds available to investors in time zones around the world,’ Kevin Tyrrell, NYSE’s head of markets, was quoted as saying in the Financial Times report. Feeling happy to be at the forefront in enabling this.
The NYSE plans to seek regulatory approval for extended trading hours not only from the SEC but also from US securities information processors such as the Consolidated Tape Association.
TAPE is the official record of trading prices on exchanges. Therefore, the inclusion of night-time activity is more likely to set the initial tone for regular trading hours.
What is NYSE Arca known for?
NYSE Arca is known for its exchange traded funds. However, it also hosts some equity and closed-end funds. The Arca exchange has traded about $27.7 billion per day in ETFs and $21.8 billion per day in corporate equities this year, according to the NYSE.
Its working window is already larger than that of the NYSE, with sessions running from 4 am to 8 pm (Eastern Time). Regular NYSE trading hours are 9:30 am to 4 pm (Eastern Time).
This change will give investors from all over the world the opportunity to invest in the US markets in a more convenient manner. Especially investors from Asia and Europe will benefit from this. They will be able to trade late at night or early in the morning as per their time zones.
However, some experts believe that this may increase market volatility. They argue that longer trading hours may increase market volatility and lead to losses for investors.
It will be interesting to see what decision the SEC takes on this proposal. If this proposal is approved, other exchanges may also consider increasing their trading hours.