US regulator advances route to 24-hour stock trading

The US Commodity Futures Trading Commission (CFTC) has approved the possibility of continuous trading for equity futures on US-registered exchanges, bringing 24-hour trading closer to mainstream status. This move, announced on Tuesday, involves the introduction of perpetual futures contracts on individual shares, according to Michael Selig, the CFTC's commissioner.

Selig emphasized in a statement that this expansion aligns with applicable law and allows US market participants to take advantage of perpetual futures, which are widely used for risk management and price discovery. These products are better suited for the CFTC's established regulatory framework than for being pursued on offshore, often unregulated venues.

The CFTC's decision paves the way for significantly higher trading volumes in securities linked to underlying stocks outside of traditional market hours, which run from 9:30 am (1430 GMT) to 4 pm (2000 GMT) at the New York Stock Exchange and Nasdaq. Ice, owner of the New York Stock Exchange, recently announced plans to introduce perpetual trading onshore in the US, pending regulatory approval.

The venture with Trade{XYZ} aims to cater to the growing market and meet the demand for retail traders seeking short-duration exposure, often around the clock, across various assets such as crypto, equities, commodities, foreign exchange, and other real-world assets.