24/7 Trading: Middlemen’s Nightmare, Retail’s Dream?

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Markets

What to know:

  • The financial world is abuzz with the idea of 24/7 trading, a concept that promises to end the after-hours shenanigans that have long been the bane of retail investors. Or so they say.
  • Academic studies and regulatory actions suggest that after-hours trading is a bit like the Wild West-thin liquidity, spoofing, and manipulation tactics that would make a cowboy blush.
  • Proponents argue that round-the-clock markets will shift power from the slick intermediaries to the plucky retail traders, allowing them to react to news in real time instead of twiddling their thumbs during market closures.

If the closing bell has been the financial equivalent of last call at a bar, then 24/7 trading is the all-night diner that never kicks you out. As the NYSE, Nasdaq, CME, and Cboe race to introduce round-the-clock trading, the real question is: who’s getting the check, and who’s left washing dishes?

According to Mati Greenspan, CEO and founder of Quantum Economics, the biggest losers won’t be the traders-oh no, they’ll be sipping champagne. It’s the middlemen, those crafty brokers who’ve made a living off traders’ inability to trade, who’ll be left holding the bill.

Greenspan, who also moonlights as a market analyst, claims that when markets reopen after a big event, “a handful of firms decide the first tradable price. Oftentimes, they’ll use a price that triggers stop losses for their clients, closing them out at a loss and making a profit for the broker who is essentially trading against the client.” Classy, right?

When asked if brokers coordinate pricing during market closures, Greenspan didn’t mince words: “Yes, manipulation outright.” He added, “They basically get to control prices, often with hours to strategize. Often hunting stop losses. When big news happens on weekends, the house tends to take liberties with pricing at the opening bell.” Because who doesn’t love a little weekend price manipulation?

These comments come as major U.S. exchanges are gearing up for 24/7 trading. The NYSE is seeking SEC approval, Nasdaq announced similar plans in December, CME is eyeing 24-hour crypto futures by 2026, and Cboe has already expanded U.S. index options to 24/5 trading. It’s like the financial world is finally catching up to the 24-hour McDonald’s drive-thru.

‘Plausible Deniability’

While Greenspan’s comments might sound like a conspiracy theory, it’s not hard to see why after-hours trading could be a playground for manipulation. Once the 4 p.m. closing bell rings, liquidity dries up faster than a British summer, making prices easier to influence.

“After the 4 p.m. closing bell, you simply don’t have the same liquidity,” said Joe Dente, a floor broker at the New York Stock Exchange. “People have gone home, and the liquidity is not there, so you’re going to see larger spreads.” Wider spreads and thinner order books create an environment where price movements can be exaggerated, like a fish out of water-flopping around dramatically.

Academic research backs this up. A UC Berkeley-University of Rochester study found that after-hours price discovery is “much less efficient,” thanks to lower volume and thinner liquidity. It’s like trying to find your keys in a dark room-you’re bound to stumble around a bit.

When asked if manipulation already occurs during these periods, Dente said it’s “possible,” but he also pointed out that “24-hour trading is going to leave things open to manipulation,” referring to conditions already seen in after-hours markets. Because why fix something that’s already broken?

Greenspan noted that these alleged manipulation practices are “not exactly above board, so they tend to maintain plausible deniability.” It’s the financial equivalent of saying, “Who, me? I was just standing here.”

A widely cited SSRN study on opening price manipulation shows how brokers can influence prices during the pre-open auction by submitting and canceling large orders, temporarily pushing stocks away from their fundamental value. It’s like a magician’s trick-distract the audience while you pull the rabbit out of the hat.

Another anonymous broker, familiar with overnight trading practices, said thin overnight liquidity can make it easier for coordinated strategies to influence prices in less widely traded stocks. And this isn’t just hearsay.

In late 2025, the SEC settled charges over a multi-year spoofing scheme involving deceptive orders used to move prices in thinly traded securities. Regulators also fined Velox Clearing $1.3 million for failing to detect “layering” and “spoofing” in volatile stocks. Meanwhile, FINRA cited firms for failing to maintain supervisory systems to identify manipulative activity in after-hours trading. It’s like the financial world’s version of a police blotter.

A Win for Retail?

While it’s hard to say how widespread these accusations are, one thing is clear: if trading goes 24/7, traders-especially retail traders-will be the ultimate winners. In today’s electronic markets, speed is king, and those with the fastest computers and best algorithms have a structural advantage.

“There’s always an edge for whoever has the fastest computers and the best program writers,” said Dente, noting that algorithms can react to news and orders “in a nanosecond.” For individual investors, keeping up is like trying to outrun a cheetah on a treadmill.

Pranav Ramesh, head of quantitative research for options at Nasdaq, pointed out that thin markets can amplify these risks. “Broker coordination may often show up as industry-wide alignment around routing and execution practices, especially where a large share of retail flow ends up with a small number of wholesalers,” he said. “Outside regular hours, scrutiny can be harder because the market is thinner and there are fewer straightforward reference points for investors to benchmark execution quality.” It’s like trying to navigate a maze blindfolded.

Sources familiar with broker routing and liquidity practices told CoinDesk that price-setting power in thin sessions is real, particularly when major news breaks while markets are closed. According to those sources, coordination around routing, spreads, and execution practices during extended gaps has historically been easier precisely because retail traders cannot participate. It’s like a party where the guests aren’t invited.

This is precisely what around-the-clock trading will solve, according to Greenspan. 24/7 markets would blunt fintech firms’ advantage by removing the weekend vacuum entirely. The recent Middle East conflict has been a perfect example of how this can open up more trading opportunities when traditional exchanges are closed.

Decentralized exchange Hyperliquid, which trades on blockchain 24/7, has seen growing interest from traders betting on traditional financial assets like oil and gold during the weekend. It’s become so popular that weekly derivatives trading volume on the platform topped $50 billion, while it generated $1.6 million in revenue over 24 hours, outpacing the entire Bitcoin blockchain’s revenue. The platform has also added an S&P 500 perpetual contract, because why not?

Needless to say, major exchanges will likely benefit from trading fees if they open for 24/7 trading. Whether round-the-clock trading ultimately weakens brokers’ influence on price setting remains to be seen. What is clear is that exchanges and investors stand to gain from markets that never close.

“Traders can react in real time without being at the mercy of the middlemen-the brokers,” said Greenspan. And if that doesn’t sound like a revolution, I don’t know what does.

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2026-04-04 17:01