SEC Approves 24X National Exchange, Opens Doors for Near-Continuous Stock Trading

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The Securities and Exchange Commission (SEC) has approved the 24X National Exchange, a groundbreaking platform set to transform stock trading by operating 23 hours daily, five days a week. Backed by Steve Cohen’s Point72 Ventures, this exchange will run from Sunday evening to Friday evening, with a one-hour daily break from 7 PM to 8 PM. Unlike traditional exchanges or fintech trading apps that utilize unregulated “dark pools” for after-hours trades, the 24X National Exchange promises a transparent, fully electronic marketplace for investors.

The First Fully-Electronic Exchange

The 24X National Exchange is poised to become the first fully-electronic U.S. stock exchange, a milestone in market infrastructure. While other exchanges such as the New York Stock Exchange (NYSE) and Nasdaq rely on hybrid models combining physical trading floors and electronic platforms, 24X’s digital-only setup eliminates this dual approach. This streamlined model aims to enhance efficiency, reduce latency, and ensure all trades are conducted in a regulated environment visible to market participants.

The SEC's approval signals a significant step forward, particularly for retail investors who often struggle to respond to after-hours market news. CEO Dmitri Galinov highlighted the risks traders face when markets close in their time zones, stating, “We will alleviate this problem by facilitating around-the-clock U.S. equities trading.”

How 24X Differs From Fintech Apps

While apps like Robinhood and Interactive Brokers offer 24-hour weekday access to stock trading, these platforms utilize dark pools for after-hours transactions. Dark pools allow participants to trade stocks within private networks, and prices in these venues are not disseminated across the market. This can lead to price discrepancies and a lack of transparency.

In contrast, the 24X National Exchange will provide a “lit” market where trade prices are officially recorded and visible to all investors. This difference is critical for ensuring fair pricing and improved market integrity, especially during overnight trading sessions.

Expanded Trading Hours: Benefits and Concerns

The approval of the 24X National Exchange introduces expanded trading hours, a concept that has divided Wall Street. Proponents argue that extended trading allows investors to react swiftly to breaking news and global events. With the ability to trade stocks from 4 AM to 7 PM initially and a planned expansion to overnight hours (8 PM to 4 AM), the exchange provides unparalleled flexibility for global investors.

However, critics caution against potential downsides. Extended hours may lead to lower trading volumes during overnight sessions, increasing price volatility. Benjamin Schiffrin, from Better Markets, warns that retail investors might face less favorable pricing in thinly traded markets. Institutional investors also worry that large overnight trades could cause significant price shifts, impacting broader portfolios.

Can 24X Disrupt the Current Market? 

The launch of the 24X National Exchange represents a paradigm shift in stock trading. For decades, U.S. markets have operated during traditional hours, with limited after-hours activity. This new model aligns more closely with global trading practices, where commodities and cryptocurrencies already trade 24/7.

By offering near-continuous trading, 24X may force competitors like NYSE and Nasdaq to adapt. NYSE has already filed for approval to extend its trading hours to 22 hours a day, highlighting the growing demand for round-the-clock access.

Additionally, the move could benefit retail investors by leveling the playing field. Previously, overnight trading was dominated by institutional players in private venues. With 24X's fully-regulated environment, smaller investors gain equal access to price movements and market opportunities during extended hours.

24X National Exchange: Changing the Game, One Stage at a Time

The 24X National Exchange is expected to launch in stages, beginning with daytime trading and expanding to overnight sessions once operational requirements are met. The exchange’s success could redefine how markets operate, with implications for clearinghouses, brokers, and even staffing models across the industry.

As the market adapts, investors should remain cautious. Volatility during extended hours may present both risks and opportunities, making it essential to stay informed and prepared.

Do you think extended trading hours benefit retail investors?

Investors of The Capitalist, do extended trading hours help you get better deals? Tell us what you think of 24X Exchange.

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