24-Hour stock trading never took off; here’s why – marketwatch stock market futures news


“The difference between stocks and commodities is that there are people all over the world wanting to buy wheat. [But] not everyone around the world wants to buy Chuck E. Cheese stock stock market futures prices. At some level, it’s that simple,” said Ian Domowitz, managing director at Investment Technology Group, an independent agency research broker.

“Actually, turning on the trading engine is very easy to do, but then there is a lot of back-office arrangements that have to be made,” said Peter Clifford, deputy secretary general at the World Federation of Exchanges in Paris flower quotes shakespeare. Convenience factor

The idea of a 24-hour market started as an exciting realm of possibility in the 1990s, when stock exchanges enabled trading outside of the 9:30 a.m.-4:00 p.m. Eastern session, as part of efforts to fend off competition from other trading venues, such as electronic communication networks.

But it never took off, even as multiple boom-and-bust cycles came and went in the following years.

earnings, or China’s inflation data. For non-professional investors, the convenience of selling stock at 11 p.m., after finishing daily chores or putting the kids to bed, could be useful us stock market futures index. The required physical infrastructure is also in place, thanks to the ability of electronic networks to connect buyers with sellers.

But if investors still can’t trade stocks as easily as they can bank at an ATM, it is largely because trading volumes remain thin outside regular hours, amplifying risks: Thinly traded markets are more volatile, and transactions there are costlier. Read more about the risk characteristics of after-hours trading.

“It all revolves around liquidity — that’s the golden goose which provides efficient markets for investors,” said Bryan Harkins, chief operating officer at Direct Edge.

“Ultimately, exchanges are typically doing what brokers want … There is just not enough liquidity in the middle of the night and investors are not really demanding that cnn money futures market. One way to look at it is, ‘Convenience is great, but I’d rather have a better price,’” he said.

Jersey City, N.J.-based Direct Edge, which became a full-fledged stock exchange last year, claims a market share of 10% to 12% of U.S. stock trading.

Officials at the New York Stock Exchange and the Financial Industry Regulatory Authority declined to offer their views on 24-hour trading funny quotes with pictures for facebook. Trading hours and liquidity

For retail investors, buying and selling stocks may be more popular than trading foreign exchange and bonds, but equities still have the shortest trading window among major asset classes.

Trading in foreign exchange and Treasurys takes place 24-hours a day for the most part of a week. Commodity and stock index futures also can be traded virtually around the clock every trading day usd to aud converter. But trading hours in the world of individual stocks are much shorter.

is currently open for business from 4 a.m. to 9:30 a.m., and then from 4 p.m. to 8 p.m., Eastern. Meanwhile, Nasdaq Stock Market, owned by Nasdaq OMX Group Inc.

is open from 7 a.m. to 9:30 a.m. in pre-open and between 4 p.m. and 8 p.m. in the after-hours live pound to euro exchange rate. Direct Edge currently opens at 8 a.m. in the pre-market and operates until 8 p.m. in the after-hours. Other exchanges and venues, such as Electronic Communication Networks, also offer trading beyond the regular hours for similar durations.

Still, stock trading in the U.S. continues to be concentrated during the regular session gold vs usd chart. Direct Edge’s Harkins said more than 95% of its volumes are transacted between 9:30 a.m. and 4 p.m. although the exchange is open on either side of that window. And while other trading venues have attempted to widen the trading hours, he added, “I would say their success is modest at best.”

One example is that investors in the after-hours marketplace must submit limit orders — which can only execute at the investor stipulated order price, or better — and can’t present market orders, which execute at whatever the best price is at the time.

The Securities and Exchange Commission noted in a June 2000 study — the latest available views from the regulator on the subject — that while more transparency and better linkages among after-hours trading venues “may improve in the years to come, full-fledged 24-hour a day trading in U.S. stocks remains in the future.” Market makers

It’s not just the lack of demand that makes after-hours trading thin the box nyc. The supply is also affected as several market-makers — firms that buy and sell stock for their own account or on behalf of clients — aren’t active during the extended hours.

Brooks McFeely, founder and president of Midnight Trader, a provider of market news and analytical services, blames the absence of the artificial liquidity provided by market makers for the low volumes during extended hours.

McFeely said he is hopeful 24-hour trading will eventually open up, thanks to the electronic networks that can enable trading at any time. Given that key news events, such as earnings releases or analyst rating changes, take place outside regular trading hours, the ability to trade stocks immediately after the news also presents a huge advantage for participants, he said.

“It’s not that investors don’t want to have access. Banks, exchanges and broker-dealers don’t necessarily want to work 15-hour days,” he said. “From a participant’s standpoint, there is no reason why you wouldn’t want to have the ability to trade General Electric

“During the day, whether you have market makers or not, you have so many market participants that it creates a vibrant market,” he said. But he added that during after-hours, it was essential for market makers to “step up and synthesize” a similar eco-system.

Still, the absence of a large pool of participants posed risks and could make those specialists and broker-dealers less efficient in the markets they were making, he added. Cross-border trading

Liquidity during off-hours could improve, at least in theory, if investors outside the U.S. were able to trade stocks here during their day usd rmb. But that has its own difficulties.

For cross-border stock trading to become possible, issues outside a stock exchange’s control — such as where the shares will be delivered, or who the custodian will be — first need to be addressed, said Clifford, the World Federation of Exchanges official.

But even if policy makers addressed those technicalities, he added, investors might still want to trade stocks in the most liquid market during their day — most likely their home market.

In other words, Hong Kong investors may not want to trade New York-listed stocks during the Asian day, any more than Americans would like to trade Hong Kong equities during the U.S. day.

Traders point out that trading is most active during the regular day even for asset classes other than stocks, and that volumes slack in those markets during the off-hours. However, investors in those markets can trade into the midnight hours, should they choose.

Investors, particularly institutions, may not feel the need for 24-hour stock trading also because index futures can be bought and sold for much longer durations.

Sam Kirtley, chief executive officer at SK Options Trading, a firm that specializes in options trading in the U.S., pointed out that a fund manager in New York who wakes up in the middle of the night fearing the economy will nose-dive can hedge by selling S&P 500 Index

Brokers may also not consider it worthwhile to stay open beyond regular hours because of the cost of manning 24-hour trading, as well as a combination of other human and economic factors.

“Everybody needs to take some rest,” said Peter Cardillo, chief market economist at Rockwell Global Capital, a boutique investment banking firm. “If you had a super bull market all the time, I think people would enjoy it, but if you have a super bear market, they wouldn’t.”

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