Cboe Global Markets (Cboe) is the latest exchange to announce plans to implement 24-hour equities trading, and it won’t be the last, according to Sylvain Thieullent, CEO at Horizon Trading Solutions.
“Traditionally limited to asset classes like FX and digital assets, exchanges are now looking to facilitate extended trading hours to adapt to an increasingly global market landscape,” he told Traders Magazine.
“However, trading in the middle of night requires technology systems that have the unwavering level of speed and precision needed to navigate potentially volatile markets,” he added.
Thieullent said that liquidity is also likely to be thinner outside of regular trading hours, which can make it difficult for high-speed traders to execute trades at desired prices.
“Realistically, it is sophisticated algorithms that are able to analyse extensive volumes of data, detecting patterns, and executing trades with split-second precision that will determine who is able to capitalise most from this trend among global exchanges,” he said.
On Monday, February 3, Cboe Global Markets announced plans to offer 24-hour, five-days-a-week (24×5) trading for U.S. equities on its Cboe EDGX Equities Exchange (EDGX), subject to regulatory review and industry developments.
The proposed expansion aims to meet growing global customer demand for expanded access to U.S. equities markets.
“We continue to hear from market participants globally – particularly those in Asia Pacific markets like Hong Kong, Japan, Korea, Singapore and Australia – that they want greater access to U.S. equities trading and need trusted venues that can offer transparency, robust liquidity and efficient price discovery,” said Oliver Sung, Head of North American Equities at Cboe Global Markets.
“As the world’s largest global exchange operator, Cboe is uniquely positioned to meet that demand. By leveraging our global infrastructure, leading-edge technology, and proven experience facilitating around-the-clock trading in global markets, we believe we can seamlessly support a 24×5 trading model for U.S. equities.”
Cboe operates 27 markets across five asset classes in the U.S., Asia Pacific and Europe. Currently, it already supports extended trading hours for U.S. equities on EDGX, with early order acceptance beginning at 2:30am ET and trading available from 4:00am ET to 8:00pm ET, Monday through Friday. During its Early Hours Trading session (4:00am – 7:00am ET), average daily volumes on EDGX increased by 135% between 2022 and 2024.
Cboe also offers near 24×5 trading in its proprietary S&P 500 Index (SPX) options, and Cboe Volatility Index (VIX) options and futures markets, in addition to 24×5 trading in its global FX markets.
The proposed 24×5 trading model for U.S. equities is expected to further expand trading opportunities for investors worldwide, enabling them to react to global macroeconomic events as they are happening, manage risk more effectively, and adjust positions around the clock.
To complement the planned expansion, Cboe continues to significantly increase distribution of its U.S. equities market data for APAC and European customers, recognizing real-time pricing as an essential component of the investing and trading process.
Its Cboe One U.S. Equities Feed, available to customers globally, offers consolidated, real-time market data from Cboe’s four U.S. equities exchanges – which collectively account for 21.6% of U.S. equities on-exchange trading.
Cboe plans to make all listed NMS stocks available for trading on EDGX for 24 hours every business day (excluding U.S. holidays), subject to regulatory review, with all trades expected to be cleared through the Depository Trust and Clearing Corporation (DTCC).
The company plans to seek approval from the Securities and Exchange Commission (SEC) and will collaborate with other industry participants to ensure operational readiness for this initiative.
