The Unbundling of the Stock Market
The article "The Unbundling of Stock Markets" by Prathik Desai argues that traditional financial markets, built on outdated structures like fixed trading hours and centralized exchanges, are being disrupted. Recent developments, such as S&P licensing its 500 index to a new crypto exchange (Hyperliquid), Nasdaq's SEC-approved tokenized stock trading, and Cboe's proposal for near 24/5 US equity trading, signal a shift towards unbundled, efficient, and accessible markets. Capital seeks the fastest path to price information, and new platforms like Hyperliquid's HIP-3, which offers 24/7 trading of traditional assets (e.g., commodities, indices) via perpetual contracts, are gaining traction due to their liquidity, lower friction, and ability to react to global events in real-time. The author concludes that market participants will adopt any structure that reduces the delay between events and price discovery, regardless of whether it originates from traditional institutions or permissionless blockchain platforms.
marsbit04/06 12:50