Exchanges Debate 24/7 Trading as Investor Demand Meets Operational Limits
The World Federation of platforms (WFE) has released a major report exploring the policy, market, and operational implications of moving toward extended equity market hours, including models that approach round-the-clock trading. While investor demand for longer sessions is growing, the paper underscores that adoption must be balanced with market integrity, operational resilience, and regulatory secureguards.
Investor and Market Demand
According to the WFE, drivers of extended hours include retail investors who want flexibility outside the workday, overseas investors viewking access across time zones, and institutional players hedging global portfolios. Retail demand in Asia for U.S. stocks during local hours, for instance, has grown significantly, mirroring developments already viewn in .
The paper highlights that issuers’ perspectives are often overlooked. Some companies welcome additional access and liquidity, while others worry about reputational risks linked to thinner overnight markets.
Operational and Regulatory Considerations
models requires a rethink of infrastructure, staffing, and regulatory frameworks. Liquidity is expected to remain concentrated around traditional business hours, with overnight trading characterized by thinner order books, wider bid-ask spreads, and potentially higher volatility.
platforms would need to calibrate market controls such as circuit breakers and kill switches, and brokers would have to provide clear disclosures to during low-liquidity periods.
Technology and Post-Trade Challenges
The paper warns that , settlement, and risk management. Real-time margin recalculations, funding access beyond banking hours, and continuous monitoring are essential. Some central banks are already exploring expanded payment system hours — the U.S. Federal Reserve is considering a 22x7x365 Fedwire, and the European Central Bank is consulting on longer TARGET2 operating hours.
Operationally, platforms must adopt near-zero downtime models. Maintenance and upgrades, traditionally done overnight, would require new approaches such as “follow-the-sun” staffing, live patching, and mirrored systems.
A Pragmatic Path Forward
For now, the WFE frames extended trading as an incremental evolution rather than a leap to 24/7. Models such as 22/5 or 23/5 trading offer a balance between meeting investor demand and preserving stability. These frameworks allow for structured “virtual closes” to support benchmark prices, corporate actions, and regulatory cut-offs.
Crucially, the WFE warns of the risks of inaction. If regulated markets do not extend access, investors may increasingly turn to less transparent venues, including crypto platforms and alternative trading systems, eroding confidence in public markets.
Industry Voices
Nandini Sukumar, CEO of the WFE, emphasized that the goal is not to prescribe a one-size-fits-all model: “The shift to extended trading is technologically feasible and already aligned with investor behaviour in other asset classes. The real question is how markets evolve in a way that protects investors, supports integrity, and strengthens global competitiveness.”
Richard Metcalfe, WFE’s Head of Regulatory Affairs, added: “Flexibility and diversity in trading models should be encouraged, with trading hours remaining the responsibility of market infrastructures.”
The WFE concludes that true 24/7 trading would represent a system-wide transformation requiring fundamental changes to governance, technology, and supervision. While feasible in the long run, it is unlikely in the near term. Instead, extended hours models represent a measured step toward future possibilities, with flexibility and global competitiveness guiding adoption.
