Why 24-Hour Trading is the Future of Investing
For global investors, 24-hour trading offers a significant advantage — particularly when market-moving events happen outside regular trading hours.
In the U.S., stock markets operate on a schedule that suits East Coast traders, opening at 9:30 a.m. and closing at 4 p.m. But for those in different time zones, trading can be less convenient. West Coast traders need an early start, while international investors in Asia, for example, face a more challenging overlap with U.S. hours.
To meet the growing demands of investors worldwide, financial institutions have been pushing for expanded trading hours, with some now offering nearly 24-hour access. Advances in technology, combined with the globalization of financial markets, have made it easier to accommodate around-the-clock trading.
This concept isn’t new; futures markets in the U.S. have traded almost continuously from Sunday evening to Friday afternoon for years, and commodity markets also offer extensive weekday hours. Cryptocurrencies, meanwhile, have proven the viability of 24/7 trading. Yet, the U.S. stock exchanges still operate within limited hours set back in 1985, offering only some premarket and after-hours trading.
This gap is now closing. The New York Stock Exchange recently extended trading on its Arca Exchange, which now operates from 1:30 a.m. to 11:30 p.m. Eastern Time, allowing nearly 22 hours of trading per day. Major brokerages, like Charles Schwab, are also expanding access. Schwab now offers clients the ability to trade all stocks in the S&P 500 and Nasdaq 100 indices, plus hundreds of ETFs, 24 hours a day.
Driving this shift is Blue Ocean Technologies, whose alternative trading system (ATS) runs from 8 p.m. to 4 a.m. Eastern, supporting trading during hours that align with the Asian market. Blue Ocean works with over 50 brokerages, including Robinhood and Webull, to serve a growing number of investors looking to trade U.S. stocks in their local daylight hours.
The need for resilient, 24-hour trading systems has become more critical as volume surges during major after-hours events. For example, when a surprise move in the yen caused volatility in Asian markets, Blue Ocean’s ATS experienced an intense surge in trades. Recognizing the importance of handling such spikes, Blue Ocean partnered with MEMX exchange to upgrade its system’s capacity, ensuring stability during high-volume events.
Investors are increasingly expecting reliable access to the market at all hours, especially in response to impactful events like geopolitical developments or election results. For brokerages, any outage during after-hours trading could damage their reputation, as clients expect the same reliability during extended hours as they do within regular market hours.
In today’s interconnected markets, where events in one part of the world affect investors everywhere, the demand for accessible 24-hour trading is only set to rise, making it a valuable tool for investors across the globe.
