SEC Chair: Pushing for US equities to transition to 24/7 all-day trading, tokenization is expected to support real-time inventory management and mitigate the risk of naked short selling.

SEC Chair Paul Atkins spoke at a 24-hour trading roundtable today, noting that U.S. capital markets are moving toward a "new day and night" paradigm. Key business and economic events are no longer confined to traditional trading hours, and investors want to adjust their positions more frequently to respond to breaking news. Extending trading hours would not only meet investor demand but also align U.S. trading platforms with overseas markets, attract more global capital, reduce risks accumulated overnight or on weekends, and boost market efficiency. Atkins stated that if registered trading platforms evolve to meet this need, investor protection, global access, and liquidity will all improve. In terms of concrete preparations, he revealed that the Depository Trust & Clearing Corporation (DTCC) has launched a 23/5 trade capture system to support clearing and settlement; the industry has adopted an overnight price range program, and the Securities Information Processor (SIP) initiative is also preparing for overnight price dissemination. He also highlighted operational challenges, such as sourcing securities to support market making when spreads may be wider. Atkins believes tokenization has the potential to help the securities industry achieve real-time inventory management, improve efficiency, reduce settlement failures, lower the risk of abusive naked short selling, and even eliminate it entirely. He also specifically called on issuers to participate in discussions, providing feedback on how 24-hour trading would impact corporate actions, material information disclosures, and EDGAR filing timelines. He emphasized that these efforts are ultimately driven by industry dynamics, competitive forces, and investor interests, and encouraged the public to submit comments.