The United States Securities and Exchange Commission (SEC) yesterday approved America’s first 24-hour national securities exchange, according to a report. press release. The 24X National Exchange will be implemented in two phases. The first stage, expected to be implemented in the second half of 2025, would allow trading of U.S.-listed stocks between 4 a.m. and 7 p.m. ET every weekday.

Meanwhile, the second stage will allow trading of stocks from 8 p.m. Sunday to 7 p.m. ET Friday. However, there would be a one-hour break from 7 p.m. each operational day for software patching and routine testing of infrastructure features, meaning the exchange would be live 23 hours a day, five days a week.

New exchange backed by billionaire investor Steve Cohen

The 24X National Exchange is backed by New York Mets owner and billionaire investor Steven A. Cohen’s Point72 Ventures fund. Cohen, known for his high-risk, high-reward investment strategy, has a personal net worth of $21.3 billion. The trading platform will allow retail and institutional investors around the world to trade U.S. securities through brokers who are authorized members of 24X. However, the stock market will be closed on public holidays for US markets like the NYSE and NASDAQ.

24X Exchange CEO Dmitri Galinov highlighted that the 24X team has been working for years to secure this important approval. He pointed out that investors face risks when markets are closed in their respective locations, which the new exchange will reduce by offering 24-hour facilities to trade US stocks while ensuring compliance with all regulations of the SEC regarding investor protection.

“With this historic approval from the SEC, we will build and operate a customer-focused exchange capable of quickly aligning with market demands and quickly adapting to customer feedback,” Galinov added. “We look forward to delivering a superior trading experience to customers around the world. 24X National Exchange will deliver the cost efficiency, speed, resiliency and adaptability that the Company’s financial institutional clients have long expected. The 24X approval comes after the company’s first application to the SEC in 2023 was met with considerable resistance and objections.

New Age technology, focus on the APAC region

The Cohen-backed exchange will focus on enabling trading at the “lowest possible cost” across various asset classes. When launched, the priority will be to capitalize on the growing demand in the Asia-Pacific region for overnight liquidity in US equities. The exchange will be built on a proven, “cutting edge” technology platform from MEMX Technologies. During this time, management is committed to continued improvements and innovations to provide a better member experience.

Charles Schwab and the NYSE plan to extend trading hours

The 24X approval follows that of Charles Schwab (NYSE:SCHW) announces that it could offer information 24 hours a day access to trading for S&P 500 and NASDAQ 100 stocks by next year. Treasuries and currencies are traded almost continuously on weekdays, which naturally drives demand for day-to-day stock trading services. However, stocks have not yet caught up to offer such efficient trading hours due to strict regulatory rules and complex trading regulations.

Companies like Robinhood Markets (NASDAQ:HOOD) and Interactive Brokers Group (NASDAQ:IBKR) have already tapped into the growing demand through 24/5 off-exchange stock trading on Blue Ocean’s alternative trading system. Strong momentum from extended trading hours also prompted the New York Stock Exchange’s parent company, Intercontinental Exchange (NYSE: ICE) to recently file an application to offer 10 p.m. trading windows every day of the week.

However, the step taken by 24X drew criticism from consumer advocacy group Better Markets, which said the move could have a negative impact on investors and markets. “Retail investors trading during an overnight session will be trading in a market where there are few buyers and sellers, and where prices will be more volatile and less favorable than during normal hours,” said Benjamin Schiffrin , director of securities policy at Better Markets.

“This means that during night trading, retail investors will only get the best prices in a bad market, thereby losing money if they had traded during normal business hours.” Additionally, several institutional investors are concerned that low day-to-day trading volumes could allow smaller transactions to have an outsized impact on prices.