SEC Chair: Advancing U.S. Stocks Toward 24-Hour, Round-the-Clock Trading; Tokenization Expected to Facilitate Real-Time Inventory Management and Reduce Naked Short Selling Risks

BlockBeats news, September 17 — SEC Chairman Paul Atkins said in a speech today at the 24-hour trading roundtable that U.S. capital markets are moving toward a "new day and night." Key business and economic events are no longer confined to traditional trading hours, and investors want to adjust positions more frequently to respond to breaking news. Extending trading hours can not only meet investor demand, but also align U.S. trading platforms with overseas markets, attract more global capital, reduce risks accumulated overnight or over weekends, and improve market efficiency. Atkins said that if registered trading platforms can evolve to meet this demand, investor protection, global access, and liquidity will all improve.

On specific preparations, Atkins disclosed that DTCC has launched a 23/5 trade capture system to support clearing and settlement, the industry has adopted an overnight price range plan, and the SIP plan is also preparing for overnight price dissemination. But he also pointed out operational challenges, such as obtaining securities lending to support market making when spreads may be wider. Atkins believes tokenization has the potential to help the securities industry achieve real-time inventory management, improve efficiency, reduce settlement failures, and lower the risk of abusive naked short selling, or even eliminate it entirely. Atkins also specifically called on issuers to participate in the discussion and provide feedback on how 24-hour trading affects corporate actions, material disclosure, and EDGAR filing times. He stressed that these efforts are ultimately driven by the industry, competitive forces, and investor interests, and encouraged the public to submit comments.