US regulator advances route to 24-hour stock trading

The US Commodity Futures Trading Commission (CFTC) has approved plans for 24-hour trading of equity futures on US-registered exchanges, bringing the concept closer to mainstream markets, according to Commissioner Michael Selig. This development could significantly increase trading activity for securities linked to underlying stocks outside of traditional market hours, currently between 9:30 am and 4:00 pm Eastern Time, when the New York Stock Exchange and Nasdaq are open.

Selig stated that the regulation provides a more secure environment for perpetual futures, which have become popular tools for risk management and price discovery, compared to offshore options that are often unregulated. The move opens up the possibility of higher trading volumes in securities tied to underlying stocks beyond regular market hours.

Earlier this month, Intercontinental Exchange, the owner of the New York Stock Exchange, announced its intention to bring perpetual trading onshore in the US, pending regulatory approval. The proposed venture with Trade{XYZ} aims to meet the growing demand for retail traders seeking short-duration exposure around the clock in various asset classes, including crypto, equities, commodities, foreign exchange and other real-world assets.