SEC roundtable covers 24-hour trading and tokenized securities

The U.S. Securities and Exchange Commission examined proposals for 24/7 market access at a session convened on Thursday, per CoinDesk reports. This meeting occurred merely 60 minutes following the body’s release of a directive sanctioning the exchange of tokenized assets.

Chairman Paul Atkins addressed attendees regarding the sector’s transition toward a continuous operational framework. "Traders can respond with greater speed to market developments," he remarked. The chairman further detailed mechanisms by which tokenization might enhance instantaneous stock control, thereby cutting settlement errors and curbing threats from harmful naked short sales.

The authority mandated a novel waiver for entities launching tokenized security exchanges, granting a five-year duration free from stringent securities oversight. Commissioner Hester Peirce observed that "digital asset exchanges naturally operate around the clock." She cautioned that lengthened business hours might result in broader bid-ask differentials, heightened price swings, and diminished opportunities to address technical glitches when staff presence is scarce.

Notwithstanding these reservations, Atkins affirmed that "key preparatory steps are currently progressing or established" to broaden trading windows past standard business days.