The FIX Trading Community has launched a working group to examine how longer trading hours in US equities could affect market structure and operational processes, according to the industry body that manages the FIX Protocol.
A number of alternative trading systems already offer overnight access to US stocks. Trading activity in these sessions is still limited, representing around 0.1% of total US market volume, but FIX notes that interest from both retail and institutional investors is increasing. The organisation points to estimates that overnight trading could reach between 1% and 10% of total volume by 2028.
According to FIX Executive Director Jim Kaye, the group will focus on how trading outside regular US hours is developing, the role of broker-dealers and alternative trading systems, and what broader access means for international investors.
Extending operations
The initiative follows recent announcements from NYSE, Cboe and Nasdaq, as well as the Securities Information Processors and the Depository Trust & Clearing Corporation, about plans to extend operations towards a 24/5 model.
The working group will examine issues such as lower liquidity and wider spreads in overnight markets, how US regulatory frameworks apply outside standard trading hours, and how 24-hour trading capabilities might be incorporated into existing institutional workflows.
