Major U.S. stock exchanges are advancing plans toward continuous, around-the-clock trading, a shift that has reignited debate over fairness in financial markets. Critics of the existing system argue that brokers are able to take advantage of thin liquidity during after-hours sessions. They also point to opening auctions as a mechanism that can be used to influence prices and trigger client stop-loss orders.
Academic research and recent enforcement actions by the SEC and FINRA lend weight to these concerns. The findings suggest that price discovery becomes less efficient outside of standard trading hours. Markets during these periods are also considered more vulnerable to spoofing and other forms of manipulative behavior, according to the studies and regulatory actions cited.
Supporters of a 24/7 trading model contend that continuous markets would fundamentally alter the balance of power between intermediaries and individual traders. Retail investors, in particular, stand to benefit by gaining the ability to respond to breaking news in real time. Under the current structure, market closures can leave ordinary investors unable to act while conditions shift around them.
The move toward extended trading reflects broader changes in how markets operate and who participates in them. Retail investor activity has grown substantially in recent years, increasing pressure on exchanges and regulators to modernize access. The debate over after-hours manipulation sits at the center of this evolving conversation about market structure.
No consensus has emerged on whether eliminating trading windows would fully address the vulnerabilities identified by researchers and regulators. Some observers note that thin liquidity conditions could persist even in a continuous market if participation remains uneven across hours. The regulatory and structural questions raised by a potential shift to 24/7 trading are expected to remain a focus for both the SEC and FINRA going forward.
Originally reported by CoinDesk.
