By Bob Cioffi, Global Head of Equities, ION Markets
Further to just disrupting financial norms, crypto markets have redefined investor expectations. In a world where digital-native investors can trade Bitcoin on a Sunday evening as easily as they can send a text, traditional equity markets appear increasingly outdated. As a result of this normalized 24/7 liquidity, the pressure is mounting for traditional equities markets to follow suit, or risk losing relevance. If equity markets fail to keep up, they could lose the attention of the next generation of traders.
Always-on access – a luxury, or a necessity?
Platforms like Binance and Coinbase already allow users to trade anytime. Millions of investors expect markets that never close, such that waiting for the ‘market to open’ feels increasingly arbitrary.
The United States is moving in this direction. Overnight trading has grown, driven by retail investor demand and the success of platforms like Robinhood and Webull. It is particularly popular among younger generations. There’s also a desire to cater to global markets, particularly in Asia where there is demand from investors to trade US stocks during their daytime hours. While volumes are still smaller than regular market hours, liquidity is increasing, and participation is broadening.
As a result, equity markets that stick to traditional hours risk losing their competitive advantage. Liquidity will always move toward the easiest and most accessible options. So, if investors can access another asset class or another country, that is where they will flock. Traders can already buy and sell crypto, forex, and various futures contracts at any times – how long can equities remain the exception?
Real-world hurdles
Currently, all major equities exchanges worldwide operate within defined daytime market hours – a tradition resistant to change despite advancements in technology. While the launch of the US’ first 23×5 equities exchange is set for September this year, and major exchanges including NYSE and Cboe have signaled moves towards round-the-clock trading, moving to true 24/7 equity trading is more complex than flipping a switch.
The modern trading day is still rooted in the earliest exchange practices, where concentrating liquidity into specific hours helped ensure efficient price discovery. This is a key concern for regulators and for organizations. The Securities Industry and Financial Markets Association (SIFMA) warned in a 2024 letter to the SEC that 24-hour trading could weaken the structure underpinning US markets.
Significant operational hurdles require industry-wide agreement to overcome. Exchanges, brokers, and infrastructure providers rely on downtime to run updates, patch vulnerabilities, and make system changes. Corporate actions like dividends, earnings releases, and shareholder votes are also designed around a fixed trading day. Add the need for continuous monitoring, and the cost-benefit is unclear.
The case for longer hours
There are strong arguments in favor of expanding trading windows, many of backed by technological advancements. Algorithmic trading, for example, already reduces the need for constant, hands-on monitoring. As its popularity grows across all markets, fewer orders are directly dependent on human intervention. Extended trading hours will also make the US markets more accessible to international investors, helping to accelerate market growth.
What’s more, equities as an asset class operates in an increasingly competitive environment. Equities are just one of the many options available to investors. So, if markets don’t keep up with the pace of change, and instead become relatively less accessible, the damage could be long-lasting.
Charting the path forward
At present, a full shift to 24/7 equities trading remains uncertain. While there are clear benefits in terms of global access and investor flexibility, significant risks to market structure, operational integrity, and regulatory oversight remain.
The shift cannot happen in isolation. It will require exchanges, brokers, clearinghouses, and technology vendors to collaborate on market data infrastructure, settlement processes, and corporate action timelines that can handle a market with no fixed opening or closing bell. Advances in multi-hub, 24×5-capable systems show what is possible, but turning possible into practical requires investment from all participants.
In reality, markets tend to evolve in the direction of investor expectations. Just as shorter settlement cycles have freed up capital more quickly, longer trading hours could bring new liquidity and new participants into equities. The open questions are whether the benefits will outweigh the cost — and whether equity markets will lead the change, or follow it.
