A 24/7 Stock Market Needs a 24/7 Risk Market. It Already Exists On-Chain
Wall Street is getting serious about markets that barely close. On September 17, theSEC brought together BlackRock, Citadel Securities, Jane Street, Nasdaq, Cboe, DTCC and others for a full-day roundtable on 24-hour U.S. equity trading. The agenda covered liquidity, surveillance, clearing, settlement, market data, cybersecurity and the infrastructure required for an eventual move toward round-the-clock trading. Robinhood has since announced plans to add weekend trading in select U.S. stocks and ETFs, extending a broader push toward continuous access.
There is a major gap in that transition: options. If stocks become continuously tradable while their options remain tied to traditional market hours, investors will be able to take on risk at hours when they can’t hedge it. Today, most U.S. single-stock options trade 6.5 hours a day, five days a week: 32.5 of the week’s 168 hours. Cboe’s new extended sessionadds about two hours a day for roughly...
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