[ SPONSORED CONTENT | THE 2025 INNOVATION OUTLOOK ]
While retail traders have already embraced around-the-clock trading via platforms like Robinhood, there remains a question mark around institutional adoption. Liquidity fragmentation and the potential dilution of core trading hours remain core concerns.
Steve Miele, chief executive of Kezar Markets, noted:“ The initial launch is likely to be retail heavy. But institutional players will only engage if there’ s sufficient liquidity. It’ s yet to be determined whether overnight markets will attract the depth needed for institutional decision-making.”
Gabino Roche, chief executive and founder at Saphyre, added another dimension:“ If institutions get involved, we need to consider the impact of T + 1 settlement. Trading securities when the US is closed raises questions about settlement processes and operational risk.”
Liquidity challenges and the future of market structure Liquidity remains a central concern for 2025 and beyond. As continuous trading hours evolve, market participants are continuing to express their worry about the impact on traditional liquidity sources, particularly in Europe.
“ We’ ve already seen a decline in continuous lit volumes,” said Rebecca Healey, founder of MindfulMarkets. AI and managing partner at Redlap Consulting.“ The more trading spreads across time, the harder it becomes to determine where liquidity truly sits.”
Healey pointed out that despite the rise of alternative trading systems( ATS), traditional exchanges remain vital:“ ATS platforms innovate with matching logic and execution methodologies, but exchanges are crucial for price discovery. The two must coexist.”
Collaboration between exchanges and ATS platforms is an emerging theme.“ Exchanges and ATSs may work more closely together on order types and liquidity provision,” Boronkay
“ Traders won’ t be replaced by AI […] But those who know how to use AI effectively will have an edge.”
REBECCA HEALEY, FOUNDER OF MINDFULMARKETS. AI AND MANAGING PARTNER AT REDLAP CONSULTING
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