24 Exchange Eyes Next Phase of Extended-Hours Trading

§ 01 Executive Snapshot

• What: 24 Exchange aims to establish a 23/5 trading system for U.S. equities, having recently won an award for its efforts.
• Who: Dmitri Galinov, founder and CEO of 24 Exchange, and the SEC.
• Why it matters: This initiative responds to a growing demand for extended trading hours, particularly among global investors, and seeks to enhance market access and liquidity.

§ 02 Key Developments

• 24 Exchange won Best in 24-Hour Trading at the 2026 Global Markets Choice Awards.
• SEC approval was granted for 23/5 trading in 2024, following an initial request made over four years ago.
• The exchange is currently awaiting a decision from the SEC on a request for a temporary exemption to launch overnight trading before December.
• 24 Exchange has signed on about three dozen major broker-dealers and is seeking additional members for its 23/5 national exchange.
• A retail trade pricing program was launched with a rebate set at $0.0038 (38-mils) to attract more retail limit order flow and liquidity providers.

§ 03 Strategic Context

• The concept of 24/7 trading infrastructure has gained traction over the last five years due to the growing number of retail investors, especially in Asia, who face limitations with traditional trading hours.
• Major exchanges like NYSE, Nasdaq, and CBOE are now exploring extended trading hours, signaling a shift towards more flexible trading options in the market.

§ 04 Strategic Implications

• Immediate competitive consequences include positioning 24 Exchange as a pioneer in the extended-hours trading sector, potentially attracting more retail and institutional traders.
• Long-term implications involve reshaping market access and operational dynamics across equity trading platforms, with potential ripple effects on liquidity and pricing strategies.

§ 05 Risks & Constraints

• Regulatory hurdles remain a significant concern, particularly regarding SEC approvals and potential delays in launching overnight trading.
• Competition from established exchanges and alternative trading systems (ATS) that also seek to offer extended trading hours could impact market share.

§ 06 Watchlist / Forward Signals

• A decision from the SEC regarding the exemption from the Securities Information Processors plan is anticipated soon, which will be critical for the launch of overnight trading.
• The expected timeline for possible commencement of overnight trading is between the end of June and mid-July, marking a significant milestone for 24 Exchange and the industry at large.