“Longer trading hours can help keep U.S. capital markets on the cutting edge, but the infrastructure must match the ambition,” said Bryan Corbett, MFA President and CEO. “Trading 23 hours a day on weekdays is a sensible next step and a real test of market readiness. Regulators should see how markets handle it before moving to around-the-clock trading. Extended hours will only benefit investors if markets remain liquid and stable.”
- Continuous trading would eliminate critical maintenance windows. The 23/5 model preserves daily and weekend breaks that allow financial institutions to maintain systems, resolve problems, and recover from disruptions. Moving to 24/7 trading would eliminate these windows and create new operational risks.
- Financial risks could accumulate over weekends. Banks, payment systems, and collateral providers do not operate 24/7. A mismatch could leave market participants unable to settle financial obligations, post collateral, or raise cash when markets are under stress.
- Overnight liquidity remains thin. SEC staff data show overnight trading made up less than 1% of U.S. stock trading volume in August. Thin trading can lead to wider spreads, less reliable prices, and more room for manipulation.
About the global alternative asset management industry
The global alternative asset management industry — including hedge funds, private credit funds, and hybrid funds — serves thousands of public and private pension funds, charitable endowments, foundations, and other global institutional investors. The industry provides portfolio diversification and risk-adjusted returns to help meet their funding obligations and return targets throughout the economic cycle.
About MFA
Managed Funds Association (MFA), based in Washington, D.C., New York City, Brussels, and London, represents the global alternative asset management industry. MFA’s mission is to advance the ability of alternative asset managers to raise capital, invest it, and generate returns for their beneficiaries. MFA advocates on behalf of its membership and convenes stakeholders to address global regulatory, operational, and business issues. MFA has more than 180 fund manager members, including traditional hedge funds, private credit funds, and hybrid funds, that employ a diverse set of investment strategies. Member firms help pension plans, university endowments, charitable foundations, and other institutional investors diversify their investments, manage risk, and generate attractive returns throughout the economic cycle.
