Crypto trade puts pressure on the stock exchanges to open around the clock

The uninterrupted trade in the cryptocurrency markets urges traditional assets to work longer - in a reversal of the campaigns of banks and fund managers before pandemic to shorten the opening times of the stock exchanges.

Bitcoin and other digital assets have entered the professional investor world since March last year, with pension funds and conservative deposit banks Family Offices and hedge funds in the risky but rapidly growing cryptom market. Last month, the Bank of America admitted that cryptocurrencies-now worth $ 2 trillion-have become too great to ignore them.

Since these blockchain-based digital assets are intertwined with the stock and currency markets, their influence on them has also increased. And a potential impact concerns trading times.

At the beginning of October, the crypto and currency trading platform based on the Bahamas submitted an application for a license to operate a national securities exchange in the US Stock Exchange Supervisory Authority.

"Once cryptocurrency trade [Became mainstream], people have got used to unlimited availability, so I think they will expect such a 24/7 trade availability for other assets," says Dmitri Galinov, CEO of 24 Exchange.

Bitcoin and other digital currencies act without a break, driven by the uninterrupted sums of powerful computers in huge data centers. During the global day, private investors can buy and sell digital coins at any time seven days a week. In contrast, stock exchanges only allow trading at fixed times five days a week, and the foreign exchange trade pauses for the weekend, alluding to the human element in finance.

But Galinov, a veteran of electronic trade in stocks and foreign exchange, now relies that large investors want to act shares and currencies on weekends-in a step that would make the foreign exchange markets a 24/7 business. and strengthen the resilience of the participating people.

"Customers are already wondering: Why can I act Bitcoin, but not Tesla after the IPO or on weekends?" He says.

longer working hours are not welcomed by professional dealers who say that the existing regime is already punished.

In January last year, fund managers and banks campaigned to shorten the merchant times of European shares, and argued that the current window of 8.5 hours a day for carrying out transactions was inefficient and anti -social. The stock exchanges disagreed and rejected demands to reconcile European business hours with Asia and the USA, where stock dealers had to handle their shops in a 6.5-hour window.

once cryptocurrency trade [Became mainstream], people have got used to unlimited availability, so I believe that they will expect such a 24/7 trade availability for other assets

But also a longer opening is not yet on the agenda. Sarah Mound, communications manager at Euronext, the stock exchanges in Paris, Amsterdam, Dublin, Brussels, Lisbon and Oslo, says that the company does not intend to extend the trading hours to the weekend.

CBOE, the global stock market operator, also says that he will adhere to his current opening times, apart from its Edgx Equities Exchange, where the company has released the opening times in March from 7 a.m. to 4 a.m.

The foreign exchange markets can move faster. Cryptocurrency exchanges offer their private customers throughout the trade all weekend so that they can act Bitcoin against the dollar, even if the foreign exchange trading is closed. This means that crypto exchanges are exposed to the risk of large currency market movements at the weekend when the foreign exchange markets open-prices could not match the course for which they offered their customers services.

"Friday night prices that brokers offer. "Since the markets for cryptocurrencies are gaining dynamics and the convergence increases with foreign exchange, crypto will continue to urge traditional investment classes into innovations."

A turning point is a long way off. According to a report by the digital infrastructure provider Copper, most of the cryptocurrency trade takes place during the week at the market times, with only 35 percent of the transactions on weekends and outside of business hours.

$ 2 trillions

value of the cryptocurrency market

cryptocurrency markets are also much more volatile than traditional markets, which explains the demand for non-stop hours, since investors often have to leave their positions immediately. Overall, foreign markets and stocks are much sleepy overall and, apart from exceptional occasions, there are only a few events that trigger the price movements that are common for digital coins.

With the growth of cryptocurrency exchanges and brokers, your business could ultimately get big banks to extend their merchant times for currencies. Chi Nzelu, Head of Macro E-Commerce at JPMorgan, says that this is unlikely for the time being, but could change if the digital exchange increases.

"Demand is currently limited in institutional space," he observes. "However, we always stay near the customers so that we can adapt to changing trade habits and preferences."