If the closing bell has long protected a profitable middleman economy, 24/7 trading aims to upend it. With the NYSE, Nasdaq, CME and Cboe moving toward round‑the‑clock markets, the big question for crypto and equity traders alike is simple: who wins and who loses?
The short answer: traders win, middlemen lose — at least according to Mati Greenspan, CEO of Quantum Economics. Speaking to CoinDesk, Greenspan argued that when markets are closed, a “handful of firms” can effectively set the first tradable price when markets reopen. He said those firms often pick prices that trigger clients’ stop losses, closing positions at a loss while the broker profits from trading against the client. “Yes, manipulation outright,” he said. “They basically get to control prices, often with hours to strategize.”
Why after‑hours markets are vulnerable
Several structural features make after‑hours and pre‑open windows prone to distorted prices:
- Thin liquidity and wider spreads: As NYSE floor broker Joe Dente points out, once the 4 p.m. ET bell rings, many participants leave and liquidity evaporates, which amplifies price moves and creates larger spreads.
- Slower price discovery: Academic work — notably a joint UC Berkeley–University of Rochester study — finds after‑hours price discovery is “much less efficient,” with lower volumes and thinner books slowing the incorporation of news into prices.
- Tactical order behavior: Research on opening price manipulation (SSRN) documents how submitting and cancelling large orders around pre‑open auctions can temporarily push prices away from fundamentals, producing distorted openings that later correct — often leaving late buyers with losses.
- Proven abuse: Regulators have found real misconduct. In late 2025 the SEC settled charges in a multi‑year spoofing scheme in thinly traded securities; Velox Clearing was fined $1.3 million for failing to detect layering and spoofing. FINRA’s 2026 oversight report cited firms for inadequate systems to detect manipulative activity in after‑hours trading.
Those conditions also favor the fastest technology and best algorithms. “There’s always an edge for whoever has the fastest computers and the best program writers,” Dente said — a tough reality for humans trying to keep pace.
How 24/7 trading changes the game
Proponents say continuous trading removes the “vacuum” that allows middlemen to profit from marketplace gaps. If markets never sleep, retail traders won’t be locked out when big news breaks, and there will be fewer isolated windows where price setters can act with limited competition.
That argument has traction in crypto markets, where 24/7 protocols already prove the model can work. Decentralized exchange Hyperliquid — which never closes — reportedly saw weekly derivatives volume top $50 billion and generated $1.6 million in revenue over 24 hours while adding an S&P 500 perpetual contract. CME is planning to launch 24‑hour crypto futures in 2026 (pending approval), Nasdaq announced plans for extended trading in December, and the NYSE is seeking SEC approval for round‑the‑clock trading. Cboe has already expanded U.S. index options to 24/5 trading. Exchanges themselves would also capture new fee revenue from longer trading hours.
But questions remain
Even supporters concede risks. Thin overnight liquidity still exists in some assets and may simply shift manipulation tactics to different hours. Some brokers and industry insiders (speaking on background) say coordination around routing, spreads and executions can be easier when retail flow is muted. Pranav Ramesh, head of quant research for options at Nasdaq (speaking in a personal capacity), warned that industry alignment around routing and execution can concentrate retail flow with a few wholesalers, complicating scrutiny outside core hours.
Will 24/7 trading actually curb abusive behavior? It’s not guaranteed. Exchanges may make manipulation harder by increasing continuous liquidity and market reference points, but the shift will also create new technical and surveillance challenges for regulators and firms.
Bottom line
If round‑the‑clock trading arrives broadly, professional and retail traders who can react in real time will benefit — and the long-standing advantage of middlemen profiting from closed markets could be diminished. Exchanges stand to gain from new fee pools, while regulators and market participants will need to adapt surveillance and routing practices to a market that never sleeps.
Read more: Bitcoin's weekend selloff may be over with CME's 24/7 crypto trading move.
Read more AI-generated news on: undefined/news
