The U.S. Commodity Futures Trading Commission (CFTC) is considering implementing 24/7 derivatives trading, which may change trading practices in financial markets.
Influence of Crypto on Trading Hours
CFTC, led by Chairman Rostin Behnam, is examining how continuously operating cryptocurrency markets may necessitate a rethinking of trading hours. "Crypto markets, operating non-stop, push us towards rethinking trading hours," noted Behnam.
Expected Liquidity with 24/7 Trading
Immediate impacts include increased trading opportunities and liquidity. Some experts suggest this could attract new market participants. "This could revolutionize trading," noted a Wall Street analyst on Twitter. Financial implications involve increased market accessibility and potentially affecting traditional exchanges.
Crypto Sets New Trading Precedent
Past discussions on extended trading hours focused on technological advancements. Now, crypto's constant operation sets a new precedent. Experts believe this change could enhance global market connectivity. Historical trends indicate initial market disruptions, but eventual acceptance can foster stability.
CFTC is actively evaluating the possibility of 24/7 derivatives trading inspired by cryptocurrency markets. This may lead to significant changes in financial market structures and increase trading access for new participants.
