Challenges for Legacy Stock Exchanges Switching to 24/5 Hour Trading

Posted byVanessa Malone

Obstacles in the evolution toward 24/7 stock trading and how blockchain-powered platforms address them

Most of today’s major stock exchanges were built in an era when financial markets operated within fixed hours, often dictated by regional business days and manual processes. As technology advances, these traditional exchanges continue to enhance their existing systems to support more automation, speed, and regulatory compliance. However, this approach has its limitations. With the push for faster settlement and the recent demand for expanded trading hours, traditional exchanges face several challenges in keeping up.

Key Challenges:

  1. Dated Infrastructure: Legacy exchanges often rely on decades-old technology stacks designed around market open and close times. Transitioning to more continuous trading will require massive system upgrades to handle real-time settlement, order matching, and risk management around the clock. Because of this, we’re seeing exchanges like Nasdaq propose a gradual shift, with the shift to 24/5 trading expected in the second half of 2026.¹
  2. Regulatory and Compliance Hurdles: Compliance frameworks were built for traditional market hours and financial regulators may not have the resources to monitor trading 24/5 or 24/7. Adapting these guidelines will be a slow-moving process. Speaking to regulatory requirements, firms also need time to adapt how they process and report data. Crypto exchanges that run 24/7, for example, leverage real-time market surveillance and other tools to meet these current and incoming requirements.
  3. Operational Challenges for Brokers and Clearing Firms: Traditional exchanges typically use off-market hours to process and report data and perform essential maintenance. Some data processing occurs in real-time during market hours including trade execution, order matching, and reporting but critical post-trade activities, including clearing, settlement, and compliance checks, are handled after the market closes. Expanded trading hours means brokers, clearing firms, and custodians will need to upgrade their systems to support this shift.
  4. Liquidity Fragmentation: While a 24-hour market increases accessibility, it also could spread liquidity out across different trading sessions. As we see more demand for global interconnectivity, trading activity could naturally pick up during respective time zones, helping to sustain liquidity across different regions. Additionally, tools like Upstream’s liquidity pool concept, automated market making, and digital asset integration could further support liquidity in a continuously operating market.
  5. Security and Stability Risks: Cybersecurity threats may increase with a 24-hour market, as there are no scheduled downtime windows for maintenance and system checks. Exchanges must implement robust risk management protocols to prevent market manipulation.

Upstream, part of MERJ Exchange, is a next-generation stock trading app designed to overcome the hurdles traditional exchanges may face. With 20/7 trading already in place and the technology equipped to operate 24/7, Upstream enables real-time, peer-to-peer trading where users maintain direct control over their assets. Liquidity is supported through innovative tools such as liquidity pools, ensuring greater market efficiency. Additionally, Upstream enforces a fair trading ecosystem with no short selling, no payment for order flow, and no market manipulation, all ensured by smart-contract technology. Investors maintain direct control of their shares on their smartphones, trading peer-to-peer with others around the globe (excluding the U.S.). Investor protections like biometric authentication and smart contracts replace traditional intermediaries, ensuring transparency and security.

We’re excited to be at the forefront of this shift toward expanded trading hours, as it aligns with our core ethos of leveraging blockchain to create a more accessible, transparent, and efficient market. As a blockchain-powered market, we believe continuous market access is the future, and we’re committed to driving this evolution.

Interested parties can learn more at https://upstream.exchange/. Forward-thinking issuers can get started at https://upstream.exchange/GetListed.

Sources: 1 LinkedIn

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