When will the CME and other exchanges transition to 24/7 trading? What is your prediction? What year?
It's inevitable that it will happen, so what's the holdup? The technology to do it has existed for more than a decade, so that's not a reason. Google stays up 24/7 with no problems.
This seems like a no-brainer win-win for everyone, similar to the transition from fraction to decimal pricing.
First of all traders win because they get more days to make money and you get rid of the huge risk of holding overnight/weekends. Countless traders over the years have blown up holding over the weekend.
With increased volume the CME collects more fees, the NFA collects more fees and the market data providers (CQG/TT/Rithmic) that charge per contract fees collect more fees.
Low volume/liquidity is not a reason against the idea because overnight sessions already have that problem.
Full "overnight" and day margins can still exist. The "close" time can still exist so that if the "close" time is let's say 5 PM and you're in a position at exactly 5:00:00:000, you have to come up with full margin.... The "open" time/price can be 1 nanosecond after 5 PM. It would be nice to have close/open prices be only a tick or two away. No more gap "opens".
Or the CME can have a formula for open/close prices similar to what they currently do to calculate settlement prices, but I don't really see a point in doing that. Banging the close is already illegal.
It's inevitable that it will happen, so what's the holdup? The technology to do it has existed for more than a decade, so that's not a reason. Google stays up 24/7 with no problems.
This seems like a no-brainer win-win for everyone, similar to the transition from fraction to decimal pricing.
First of all traders win because they get more days to make money and you get rid of the huge risk of holding overnight/weekends. Countless traders over the years have blown up holding over the weekend.
With increased volume the CME collects more fees, the NFA collects more fees and the market data providers (CQG/TT/Rithmic) that charge per contract fees collect more fees.
Low volume/liquidity is not a reason against the idea because overnight sessions already have that problem.
Full "overnight" and day margins can still exist. The "close" time can still exist so that if the "close" time is let's say 5 PM and you're in a position at exactly 5:00:00:000, you have to come up with full margin.... The "open" time/price can be 1 nanosecond after 5 PM. It would be nice to have close/open prices be only a tick or two away. No more gap "opens".
Or the CME can have a formula for open/close prices similar to what they currently do to calculate settlement prices, but I don't really see a point in doing that. Banging the close is already illegal.
