Could the push for 24-hour trading affect your portfolio?
The possibility of wider adoption of around-the-clock trading is on the horizon, but experts have differing opinions on the potential outcomes for investors.
The 24X National Exchange, modeled after brokerages like Robinhood and E-Trade, will provide investors with continuous access to their holdings. This move, predicted by GraniteShares' Will Rhind, is expected to launch later this year.
The CEO of the firm stated on CNBC's "ETF Edge" on Monday that many investors have learned from the crypto world and now desire to trade ETFs 24/7 using their iPhone, regardless of their location.
The New York Stock Exchange (NYSE) announced in October that it plans to increase trading hours to 22 hours on weekdays.
Rhind added, "This is another step in the evolutionary process to further legitimize it through exchanges."
Ben Johnson, Morningstar's head of client solutions, asset management, believes that a shorter trading day has more value.
"Johnson stated in the interview, "Your portfolio is like a bar of soap. The more you handle it, the more you trade it, the less you have it left at the end of the day.""
Johnson believes that international exchange-traded funds may already be providing investors with the opportunity to trade overseas equities, while some proponents argue that nonstop trading could offer additional chances to do so.
"By being listed and traded on the exchange, the ETF acts as a wrapper and vehicle, providing access to various markets and opportunities for investors worldwide, not just those in the U.S.," he stated.
Markets
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