24 Hour Trading
Henry C.K. Liu
hliu at mindspring.com
Thu May 27 07:17:31 PDT 1999
It may be interesting to join the debate on the NYSE proposal for 24
hour trading. Today NASDAK follows suit.
So far most reactions are negative:
No down time for companies to release news.
No down time for market makers to regroup, thus creating more volatility
and conditions where few stocks can open for trading.
The problem of of liquidity is of concern. Buyers may place an order at
an quoted price and wake up finding him/herself paying 12 points higher
in the morning.
On the positive side:
It favors investors who cannot trade during the day.
It favors international trading from overseas and further globalize the
markets.
Less pent-up pressure on market opening every morning.
Californai brokers can sleep later and not have to be in their offices
by 6:00 am every morning.
Henry C.K. Liu
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