Daily Journal Features Joel Greenberg and Sara Adler on the SEC’s Extended-Hours Trading Proposal
Joel Greenberg, senior counsel, and Sara Adler, counsel, of Arnold & Porter’s Corporate & Finance practice, were quoted in the Daily Journal article, “The Market That Never Sleeps,” on the Securities and Exchange Commission's (SEC) upcoming roundtable to discuss moving toward 24-hour trading in the U.S. equity markets.
Sara discussed the regulatory timeline for implementing extended-hours trading, noting that Nasdaq’s new 23-hour-a-day, 5-day-a-week systems could become operational as early as December, pending final SEC approval. She also acknowledged that while longer trading hours will introduce new operational and market risks for exchanges, public companies, and investors, established exchanges and SEC oversight should help mitigate many of those concerns.
Joel explained that investor demand for near-continuous access to the markets has been building for years, observing that "there's so much pressure to trade outside of normal hours that people find a way." He noted that trading already occurs through alternative venues but emphasized that national securities exchanges would provide greater efficiency and transparency for investors. Highlighting the increasing pace of global information flow, Joel added, "They're going to do it because we have been—in for the past 10 or 20 years—in an environment where traders get enough of an information flow where they want to react instantly to news." Looking ahead, he observed that the SEC may need to expand the availability of its EDGAR filing system to ensure investors have timely access to material disclosures whenever markets are open, concluding, "It's going to happen. There's a lot to be figured out."
