Why is this coming up…or…in my case, why is this coming up once again? So, before I go into this latest attempt, let me discuss some previous attempts and also some historical context. The last real time I saw this contemplated was back in the ‘Dot Com’ boom of the late 1990’s when the exchanges wished to take advantage of all the hyped up trading in new companies back in the day. Specifically, they discussed starting a Saturday morning session of the markets, which wasn’t as hard to do as you might imagine. You see, until 1950, the New York Stock Exchange (the ‘NYSE’) did have a Saturday morning session between 09.00 – 12.00 New York time. Admittedly, I understand it was mainly used to tidy up the previous week’s trading, much as the Wednesday afternoon sessions had been back then…but it was still there! This was obviously before the advent of fast international communications such as we have today…but what I always found interesting was that to my understanding, the Saturday morning sessions rule was ‘suspended’ and never really abolished, so fairly easy to restart. I could be wrong on this, as I only heard this second-hand from grizzled old traders when I was a lot younger…but it would be a lot easier to bring back a suspended rule, than one that had been abolished.
So, let’s look at some of the responses given to the CFTC, at least, those that have been made public. I will not go into detail, as some of these are quite extensive (the FIA responded with 14 pages…others with only 4 or 5 pages) but I will detail some of the core issues that were raised & the concerns. To start with, some see many operational, infrastructure, risk, compliance & regulatory issues whereas others do not. There are also understandable differences in risk mitigation tools used in, for example, the crypto markets when compared to more traditional markets in both trading a clearing longer days & hours.
The Futures Industry Association (the ‘FIA’) raised concerns about liquidity access to collateral, margin, collateral calls & default management stating ‘The current framework and infrastructure for margining is not prepared for wide scale 24/7 trading and clearing.’2
. Yet the Crypto Council for Innovation (the
‘CCI’) highlighted how ‘The broader U.S. financial system was already adapting to real-time, 24/7 operations.’3
going on by using the example of the
24/7/365 FedNow Service operated by the U.S. Federal Reserve as well as similar services in the UK, EU & Singapore.
The question of auto-liquidation also caome up as a risk management tool and many pointed out how it was not appropriate, especially in low liquidity environments, even that it may actually be against the core of some participants legal obligations. Additionally, the chance of a cascading markets effect, adding to more market volatility, would be very real…and I tend to agree with this given the number of ‘flash-crashes’ I’ve seen in illiquid very early Far
2 FIA > Articles (21st May 2025) 3
www.cryptoforinnovation.org (21st May 2025)
WOULD EXTENDED HOURS HELP SOME PRODUCTS OR HINDER THEM…
14 | ADMISI - The Ghost In The Machine | Q2 Edition 2025
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