SEC Director Selway Supports 24/7 Trading of Securities
Commentary by Steven Lofchie
SEC Director of the Division of Trading and Markets Jamie Selway supported the industry's move toward continuous trading.
In an address before a SIFMA roundtable on the issue, Director Selway suggested that 24-by-7 trading presents a rare opportunity to "increase [the nation's] global pre-eminence, deepen ... capital formation advantages" and benefit investors everywhere. He acknowledged the growing consensus toward 24-by-7 operations. He highlighted the SEC's recent approval of NYSE Arca’s proposal to expand trading hours. He also mentioned that a similar proposal from Nasdaq was currently out for comment.
Mr. Selway cautioned that questions regarding shared infrastructure must be answered before the marketplace takes the next step. He emphasized that a needed focus on operational particulars, such as handling corporate actions, is warranted to ensure a smooth expansion. He urged the audience to meet implementation deadlines, without unnecessary delay, once they are established. He pointed out that equity market data plans proposed extending SIP operations by the end of 2026 and that the NSCC plans to be ready in June.
Commentary
Director Selway's comments on 24/7 trading are further illustrative of how much culture at the financial regulators has shifted with this Administration. Prior regulators might have impeded the move to 24/7 (which was likely inevitable with the growth of Asian markets) worrying that some investors would be injured by trading during hours when the market is less liquid. By contrast, this Administration emphasizes the advantages of the ability to trade at all times gives the US markets over other competitive markets.