24 Exchange, a multi-asset class trading platform, has recently submitted an updated Form 1 application to the U.S. Securities and Exchange Commission (SEC) for a license to create a new national securities exchange.
If approved, this new U.S. equities exchange, 24X National Exchange, will be the first fully electronic exchange in the U.S. that allows around the clock trading of securities.
According to 24 Exchange CEO and Founder Dmitri Galinov, 24X National Exchange would facilitate around-the-clock trades in U.S. equities for retail and institutional traders anywhere in the world via broker-dealers, who are registered members of the Exchange.
Speaking on the rationale behind the launch, Galinov said that traders are most at-risk when the market is closed in their geographic location, adding that 24 Exchange will eliminate this problem by offering around-the-clock retail trading.
“We believe 24X National Exchange will attract U.S. and foreign companies and investors to list and participate in the U.S. market,” he told Traders Magazine.
According to Galinov, the timing for the SEC’s review and approval decision will be determined solely by the agency.
“We would plan to launch our new exchange as soon thereafter as possible,” he said.
“If approved, 24X National Exchange will enable any institutional or retail trader to benefit from the proven stability and cost efficiencies that only 24 Exchange can deliver,” he added.
Galinov further said that if granted a license by the SEC, 24X National Exchange would represent the highest levels of regulatory scrutiny and oversight – as well as of investor protections, resilience and quality – that a global equities trading platform could achieve.
“24X National Exchange will reduce risk by making a regulated exchange available to trade around the clock with appropriate controls that were developed in close coordination with the SEC,” he said.
24X National Exchange, if approved for a license, will work like a regular exchange, while also enabling participants to trade U.S. securities, including those with unlisted trading privileges (UTP), via broker-dealers who are registered members of the exchange, Galinov said.
“In addition, the new exchange would be a good venue to facilitate cryptocurrency ETF trading among other instruments,” he said.
Regulated by the Bermuda Monetary Authority, 24 Exchange currently offers FX NDFs, FX Swaps, and FX Spot trading.
“We believe adding a U.S. equities exchange to our company’s range of FX offerings would create major new opportunities for exchange participants, and their institutional and retail customers around the world,” Galinov said.
He added, that if approved, 24X National Exchange “would run on a proven, state-of-the-art technology platform provided by MEMX”.
“To accommodate routine industry IT needs such as software upgrades and functionality testing, we plan to implement brief trading pauses on the new exchange: one hour trading pauses on business days, Sundays and holidays, and a three-hour trading pause on Saturdays,” he said.
