SEC and CFTC Propose Shift to 24/7 Financial Markets in the US
The US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have issued a joint statement discussing a potential shift to 24/7 capital markets, which would significantly impact traditional financial markets that currently operate within limited hours. This move towards an ``always-on'' trading environment aims to match the evolving nature of a global economy. However, the agencies noted that extending trading hours may be more feasible for certain asset classes than others, suggesting a tailored approach is necessary. The proposal could enhance capital velocity but may also introduce greater risks for traders by exposing their positions to global market fluctuations during off-hours. The statement follows previous regulatory developments, including the Trump administration’s call for improved oversight and the establishment of a framework for overseeing crypto derivatives. Additionally, advancements like quantum-resistant architecture for cryptographic protections are also being considered in light of potential future threats.
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