The New York Stock Exchange, often abbreviated NYSE, is famously known for its strict trading windows, which dictate when financial executives around the world have to be awake to make, and process, trades. Currently, those hours are 9:30am to 4pm.
But recently, the NYSE has begun looking into a 24-hour operating model, all because cryptocurrency has been so successful that way. Is this a good idea, though? Read on to find our take on a 24-hour trading model for the NYSE.
Why Are NYSE Hours Restricted Anyway?
The NYSE has been around for a long time, centuries, in fact. Started in 1792, the NYSE was once nothing but an agreement between brokers. But in the decades following, it morphed into the massive conglomerate of businesses it is today.
When the NYSE was founded, there was no technology for trading stocks, and those wishing to buy and sell had to travel to a specific building and pay in cash or gold for particular certificates that corresponded to stock in various companies.
As you can imagine, because this had to be done in person, hours were established when the building would be open. Historically, 9:30-4 are the hours when the sun is out most of the year (besides the darkest days of winter), which is why it made sense for the NYSE to set these hours.
Additionally, because trading stocks was mostly done in cash transactions, there was no way to do it from afar unless you were willing to trust someone with your money—which many people did back in the day—only to be scammed in the end.
The reality is, while this was once the case, it no longer is, and we are honestly shocked that the NYSE hasn’t lengthened its hours as the world has changed and digitized. However, they have, in recent years, added an early morning and a late afternoon trading session to meet demand.
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Why Is the NYSE Looking at the 24-Hour Model?
Until the COVID-19 pandemic of 2020, most stockbrokers had to live in New York and travel to the NYSE on a daily, or weekly basis. As a result, no one asked whether they could go remote because it just didn’t seem possible. But during the pandemic, all trading went remote, and the NYSE realized it could be done this way, and that there was no real need to have people making trades in person.
Plus, there are so many online platforms now that allow for trading, that there isn’t many deals done in cash anymore, anyway.
In recent years, trading cryptocurrency has risen to prominence, and the leaders and analysts at the NYSE theorize that, unlike in previous decades, part of that is because individuals can trade when it is convenient for them. Once upon a time, if you wanted to trade stocks, you had to drop everything and head to New York, but most Bitcoin traders do so now from the comfort of their homes, working around other obligations and jobs.
It seems a bit late, but the NYSE is suddenly realizing that perhaps this is the better model, especially since working remotely is commonplace these days. Whether or not this means that the NYSE is scared of losing business to cryptocurrency companies, we aren’t sure.
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So Why Don’t They Just Change?
While it may seem like a no-brainer that the NYSE should become a 24-hour operation, it isn’t that simple. First and foremost, the NYSE is highly regulated, and the regulators (the SEC) must agree to the change.
The NYSE has already approached the SEC, and while they didn’t say no, they expressed concern about how traders will get help during the after-hours periods. This sounds like an absolute excuse to us because they will get help the same way that afternoon or early morning traders currently do during after-hours trades.
Not to mention that there are many cryptocurrency companies that offer support around the clock. We think that the SEC just doesn’t want to admit that the NYSE has a good idea. We also think that the SEC just wants to gate-keep day trading for those who can do it during normal work hours.
The point is that the world is changing, and it is high time that the NYSE works to keep up with the changes, even if that means moving some employees to the night shift. In New York City, that shouldn’t be a problem. Several cities around the world have already moved to a model that allows them to keep various businesses open around the clock, and doctors and nurses have been doing it for decades—it just takes someone making the first step.
The Pros of NYSE Going to a 24-Hour Clock
There are several pros of the NYSE adopting the 24-hour business model, and they are listed below.
· Equal access to trading by everyone: No longer would you need to be available during workday hours to make money off trading.
· Job growth: Switching to a 24-hour model will keep the physical buildings of the NYSE open longer, and they require staffing. Plus, remote customer service jobs with night hours will likely pop up.
· Convenience: Whether or not you trade frequently, you’ll be able to trade when you want to at your own convenience.
· Better competitive advantage to global markets: Currently, international traders can only trade during the hours where their hours overlap with US hours. By going 24 hours a day, international traders will be able to interact with the market better.
Overall, we think it would be a good idea if the NYSE switched to a 24-hour model. We don't know whether they will actually do this, but given the current financial situation, it could go a long way toward helping the US alleviate debt.
Although we are excited about the prospect of the NYSE being available 24/7, we are sure they will still take Sundays off or something; after all, the US is still a country built on Puritan ideals.
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