Just saw a very interesting piece of news:
A few hours ago, Nasdaq officially filed documents with the SEC, planning to extend U.S. stock trading hours to 23 hours per day, formally incorporating the "night session" into the official trading system.
Hmm? Are you trying to set the stage for the 7x24 "on-chain stocks" and "tokenized assets" market two years from now, starting with 5x23?
Simply put, it currently looks like the image above. If approved, it will change to the image below.
If it really gets approved, the impact will be significant:
1. Retail Investors - First and foremost, the experience for retail investors will improve. No more staying up late waiting for the market to open; they can buy and sell during the day too.
And this enhanced experience isn’t limited to Futu and Tiger Brokers. It applies equally if you’re using on-chain U.S. stocks like Ondo Finance or StableStock. This is because, fundamentally, your buying and selling are executed through their brokers acting as intermediaries. This is also the underlying mechanism for "on-chain U.S. stocks having no slippage and infinite liquidity," as they are backed by the NYSE and Nasdaq. As long as broker transactions become smoother, your on-chain actions will naturally become smoother too.
2. DeFi - Previously, the low liquidity and trading volume in pre-market and after-hours sessions affected the composability of on-chain U.S. stocks in DeFi, as the price discovery mechanism was in a "downgraded mode" during non-trading hours. Now, with nearly 24-hour official markets, it will provide the most authoritative and uninterrupted "price oracle" for future DeFi protocols (such as lending and derivatives).
3. Brokers/MMs for On-Chain U.S. Stocks - These brokers and market makers will now be able to hedge in the U.S. stock market for 23 hours, making the price curve smoother. Market makers can provide deeper liquidity on-chain around the clock without worrying about extreme risks. Unlike before, where a major event or black swan during the pre-market hours left prices unreflected and nowhere to run, forcing everyone to wait for the market to open.
The era of on-chain U.S. stocks and the tokenization of everything is undeniably drawing closer.
