Oksana Koneva

Managed Funds Association urges regulators to delay full 24/7 market trading

Managed Funds Association urges regulators to delay full 24/7 market trading
Call to delay 24/7 trading

U.S. regulators are facing calls to phase in longer trading hours rather than move directly to continuous markets. The Managed Funds Association says exchanges should first shift to 23 hours a day, five days a week before any broader move to round-the-clock trading.

Highlights

  • The Managed Funds Association urged the SEC and CFTC to delay implementing full 24/7 trading, recommending a phased expansion instead.
  • The association advocates allowing some exchanges to first transition to 23-hour trading days over five days per week before moving to continuous trading.
  • The group cites the need for market participants to adapt and assess impacts on liquidity, risk management, and regulatory oversight during the transition.

Phased approach to extended trading hours

As reported by Bloomberg, the Managed Funds Association said in a letter sent Tuesday to the Securities and Exchange Commission and the Commodity Futures Trading Commission that the Trump administration should move slowly in expanding trading toward a 24-hour model.

The group, which represents hedge funds and private credit firms, asked regulators to let some exchanges complete their planned transition to 23 hours a day, five days a week before pushing ahead with continuous, all-hours trading.

Market structure concerns for the industry

A gradual rollout would give market participants more time to adapt operationally and test how longer trading sessions affect liquidity, risk management and market oversight.

The request highlights caution within parts of the alternative investment industry as U.S. markets weigh structural changes that could alter trading patterns across exchanges and related financial products.

As we previously wrote, the S&P 500 rally faced a key test from earnings expectations and elevated Treasury yields.

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