The Managed Funds Association (MFA), representing hedge funds and private credit firms, sent a letter Tuesday urging the SEC and CFTC to adopt a phased approach toward round-the-clock trading. MFA recommends first implementing a 23-hours-a-day, five-days-a-week (23/5) model before moving to continuous 24/7 markets, arguing that eliminating daily and weekend pauses would require a "fundamental change to market structure, post-trade processes, operations practices, and regulatory oversight."
The group warns that trading venues cannot make the shift in isolation, citing risks such as continuous market surveillance requirements, potential mismatches in capital and clearing timing, and heightened manipulation risk. Nasdaq Inc., the New York Stock Exchange, and the London Stock Exchange are planning to extend trading hours in coming months to compete with platforms like Kalshi Inc. and Binance that already offer 24/7 trading.
The CFTC plans an industry panel next month, while the SEC held a session in September. Neither agency has set timelines. SEC Chairman Paul Atkins said evolving exchanges to offer additional hours could bring "greater investor benefit and protection, broader global access, and improved liquidity."
Source: Bloomberg Markets · Summarized by HeadlinesBriefing