Robinhood to allow 24-hour weekend trading of US stocks as industry shifts to wider access
The move comes as Nasdaq, London Stock Exchange plan to expand trading hours.
Robinhood announced on September 29 that it will allow its users to trade US stocks 24 hours a day during weekends, signaling a broader industry shift towards 24-hour market access. This move is part of Robinhood's strategy to become the preferred platform for active traders, offering them tools typically reserved for hedge funds and major trading firms.
Currently, Robinhood has been facilitating round-the-clock trading during weekdays since 2023. Post-launch of this feature, approximately 25% of the total daily trading volume on hectic days came from trades made outside traditional market hours. This marks the first time that Robinhood is providing weekend trading services.
While there are concerns regarding the potential lack of liquidity during non-traditional trading hours, leading global exchanges like the Nasdaq and the London Stock Exchange are also moving towards extended trading hours. Paul Atkins, chair of the United States Securities and Exchange Commission, highlighted the importance of real-time market reactions to breaking news, stating that waiting until 9:30 on a Monday morning to adjust positions or rebalance hedges could result in missed opportunities or increased risk.
Initially, Robinhood will provide a selection of stocks and exchange-traded funds for weekend trading in partnership with overnight trading infrastructure firm Bruce ATS. The feature, pending regulatory approval, will also enable traders to bet on specific corporate earnings metrics through a collaboration with derivatives exchange Cboe. This allows users to place wagers on whether a company will exceed earnings estimates or achieve a specific revenue target via Robinhood’s prediction markets hub.
In addition to these offerings, Robinhood plans to enable its US customers to trade perpetual futures, which do not have an expiration date, and to create AI agents within the app to execute trades on their behalf. Furthermore, the company's social trading platform, akin to the popular WallStreetBets community on Reddit, will be made available to all eligible US users following a beta launch earlier this year.
Written by urgent.news from Straits Times Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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