24X Pushes SEC for Green Light on 23/5 Stock Trading

STAMFORD, Conn. – April 29, 2026 – 24X National Exchange has intensified its campaign to launch around-the-clock stock trading, urging the Securities and Exchange Commission (SEC) to grant a temporary exemption that would allow it to begin overnight operations ahead of schedule. In a detailed response letter filed Wednesday, the exchange argues that an immediate launch would bring much-needed regulatory oversight and transparency to a U.S. equity market that already operates in the shadows after the closing bell.

The company, which has already received SEC approval to become the first national exchange to operate on a 23-hour, five-day-a-week basis, is now seeking to bypass a key condition of that approval: waiting for the market's central data feeds to become fully operational for overnight sessions. 24X argues this temporary relief is a "measured, pro-investor path" that would move existing after-hours activity from less-regulated venues onto a fully supervised platform, offering investors protections that are currently absent.

"The global demand for U.S. equities does not stop when the traditional trading day ends, and neither should the protections of a regulated national securities exchange," said 24X National Exchange CEO and Founder Dmitri Galinov in a statement. "Our proposal simply allows that activity to take place on a regulated exchange, with the full suite of investor protections, surveillance, and transparency that comes with it."

A Market That Never Sleeps

The push for extended trading hours is not happening in a vacuum. It reflects a fundamental shift in how and when investors want to access U.S. markets. Fueled by a global investor base, the rise of retail trading, and a 24/7 news cycle, demand for the ability to trade U.S. stocks outside the traditional 9:30 a.m. to 4:00 p.m. Eastern Time window has grown significantly.

This industry-wide trend has not gone unnoticed by major market players. Incumbent exchanges, including Nasdaq and Cboe, have also received regulatory approval or are actively developing plans to offer near-24/5 trading. Nasdaq received its own SEC approval for 23-hour trading earlier this month, while Cboe is targeting a launch for its own extended session later this year. The race is on to capture the burgeoning overnight liquidity.

The core of 24X's argument is that this overnight trading is already a reality. "Overnight trading is already happening today on less-regulated venues that offer limited transparency," Galinov noted. This activity largely occurs in dark pools, through over-the-counter (OTC) desks, and on various alternative trading systems. While these venues provide access, they typically offer less pre-trade price transparency and operate with a different set of rules than a national securities exchange, posing potential risks for investors, particularly those in the retail segment.

The SEC's Regulatory Dilemma

24X's request places the SEC in a challenging position, forcing it to weigh the benefits of accelerating market innovation against its foundational mandate of ensuring fair, orderly, and efficient markets. The primary sticking point is the readiness of the market's data infrastructure, specifically the Securities Information Processors (SIPs).

SIPs are the lifeblood of market transparency, collecting quote and trade data from all exchanges to create the single, consolidated tape that investors rely on for accurate price discovery. The SEC's initial approval for 24X was contingent on these SIPs being upgraded to operate during the new overnight session. As of now, that work is not complete.

24X is asking the SEC to allow it to launch using "alternative or non-SIP consolidated data" on a temporary basis until the SIPs are ready. The exchange asserts that the technology and clearing infrastructure are prepared for the launch. However, industry groups like the Securities Industry and Financial Markets Association (SIFMA) have previously voiced strong opinions on this matter. SIFMA has consistently argued that trading should not commence on any new extended-hours platform until the SIPs are fully operable, stressing that consolidated data is essential for price transparency and investor protection. This creates a clear point of contention, pitting the exchange's desire for speed against institutional calls for infrastructural prudence.

The SEC's decision will be a bellwether. The commission has historically been cautious, issuing bulletins that warn investors of the risks of extended-hours trading, such as lower liquidity and higher volatility. Yet, it has also shown a willingness to foster innovation, exploring concepts like "regulatory sandboxes" in other areas of finance. Granting 24X's temporary exemption would signal a significant shift, prioritizing the immediate regulation of existing overnight activity over the prerequisite of a fully integrated data system.

The Battle for After-Hours Liquidity

Should the SEC approve the exemption, 24X would gain a significant first-mover advantage in the race to build a centralized, regulated marketplace for overnight U.S. equity trading. By launching before its larger competitors, the exchange could potentially attract a critical mass of volume from the disparate, less-regulated venues where that activity currently resides.

This move could reshape the competitive landscape. A successful launch could prove that a liquid, transparent, and regulated 24/5 market is viable, putting pressure on other exchanges to accelerate their own timelines. For investors, this increased competition could eventually lead to better pricing, lower trading costs, and more equitable access for participants across the globe.

However, the path is not without its challenges. The primary hurdle for any extended-hours session is attracting sufficient liquidity. Historically, after-hours markets are thin, leading to wider bid-ask spreads and the risk of price moves on small volumes. 24X will need to convince market makers and institutional investors to commit capital to its platform, a task that could be more difficult without the universal data feed provided by the SIPs.

The ultimate success of the venture hinges on whether the benefits of a regulated, transparent venue are compelling enough to pull participants away from their existing overnight trading habits. The exchange is betting that the promise of enhanced investor protection and exchange-grade surveillance is a powerful draw. Now, the market and its regulators must decide if the time is right to take that step, even if it means building the final pieces of the infrastructure while the market is already running.