In a move that echoes the always-on nature of cryptocurrency markets, the Chicago Board Options Exchange (Cboe) has announced plans to offer 24-hour trading, five days a week, for US stocks. This groundbreaking initiative aims to cater to international investors, particularly those in the Asia-Pacific region, by providing extended access to American markets.
Embracing the Crypto Model
The world of traditional finance has been gradually warming up to the disruptive influence of Bitcoin and other cryptocurrencies. Beyond the approval of crypto-based ETFs and the accumulation of BTC reserves, a paradigm shift is brewing behind the scenes of major stock exchanges.
The Cboe, a dominant player in the global derivatives market, recognizes the need to adapt to the evolving landscape. By extending its trading hours, the exchange seeks to address the limitations of traditional market operating hours and compete with the burgeoning tokenized asset platforms that offer uninterrupted access.
We continue to hear from global market participants – particularly those in the Asia-Pacific – that they want better access to U.S. equity trading. By leveraging our global infrastructure, cutting-edge technology, and proven expertise, we believe we can seamlessly support a 24×5 trading model for U.S. equities.
– Oliver Sung, Head of North American Equities at Cboe
Around-the-Clock Access to US Stocks
While the Cboe already offers extended trading hours for certain derivative products, this new offering will specifically target US stocks. It’s important to note that the proposed 24/5 model excludes weekends, unlike the true 24/7 nature of decentralized finance (DeFi) platforms.
The decision comes at a time when tokenized real-world asset (RWA) offerings are gaining traction. These innovative products allow stocks, bonds, and real estate to be traded on decentralized exchanges without any time restrictions, posing a significant challenge to traditional markets.
Responding to Macro Events in Real-Time
Beyond catering to international demand, the Cboe’s move is also driven by a desire to respond more efficiently to global macroeconomic events. The recent market turmoil triggered by President Donald Trump’s trade policies highlights the need for markets to absorb and react to such developments in real-time.
The proposed 24×5 trading model for U.S. equities should further expand trading opportunities for global investors, allowing them to react to macroeconomic events as they unfold in order to manage risk more effectively and adjust positions continuously.
– Cboe statement
The Rise of Tokenized Assets
Since the election of Donald Trump, the market capitalization of tokenized RWAs has surged, recently hitting a peak of $17 billion. The promise of a more favorable regulatory environment has fueled the growth of crypto-related options, intensifying the competition with traditional markets.
- Tokenized stocks allow fractional ownership and 24/7 trading
- Bonds and real estate are also being tokenized for greater accessibility
- DeFi platforms enable global access without time restrictions
The rise of tokenized assets is rapidly redefining how investors interact with financial markets, offering a more flexible and inclusive alternative to traditional systems.
Embracing the Future of Finance
As the lines between traditional finance and the crypto world continue to blur, established players like the Cboe are recognizing the need to adapt and innovate. By extending trading hours and catering to global demand, they aim to remain competitive in an increasingly digital and interconnected financial landscape.
Key Takeaways
- The Cboe plans to offer 24/5 trading for US stocks, emulating crypto markets
- The move aims to cater to international investors and respond to macro events
- Tokenized assets are gaining traction, offering 24/7 access and greater flexibility
- Traditional finance is adapting to the disruptive influence of cryptocurrencies
As the Cboe prepares to launch its groundbreaking 24/5 trading model, it remains to be seen how other major exchanges will respond. One thing is certain: the unstoppable march of cryptocurrencies and blockchain technology is forcing the old guard of finance to rethink their strategies and embrace the future.