Recently, some individuals have called for the stock market’s trading hours to be cut. These people believe that the benefits of cutting trading hours far outweigh the potential drawbacks. Inversely, some have defended the stock-market schedule and have provided reasons why they think the long-established trading hours should be left alone.
With all this in mind, the question becomes: Which side—and which position—is correct?
Admittedly, the answer is highly subjective. But opinions can be better developed with the help of unbiased information that supports both arguments, and that’s precisely what the following content aims to provide.
Arguments in Favor of Shortening Stock-Trading Hours
More Accessibility for Working Parents
On business days, the stock market opens at 9:30 AM EST (6:30 AM PST) and closes at 4:00 PM EST (1:00 PM PST). Because of these hours, working parents can have a difficult time providing for their children while the market is live. Some believe that this point limits the number of women and parents who work in finance. They feel that by cutting the start time and end time by one hour, stockbroker jobs will be more widely accessible.
Increased Access for Investors
Many individuals, from a variety of backgrounds and professional spheres, decide to invest in the stock market. The majority of these individuals make their living at a full-time job—hence how they saved up enough cash to invest in the market in the first place.
The trouble, however, is that the “normal” full-time working hours in America are from nine in the morning until five at night. This means investors can have a tough time speaking with their financial professionals, most of whom leave the office when the market closes.
But by cutting trading hours, financial professionals can have more time to process orders and connect with clients. They can still begin at nine-thirty and end at four, but the first and last hours of the day could conceivably be spent working with clients.
Arguments Against Shortening Stock-Trading Hours
It’s Tradition, and Change Will Require Adjustments
Wall Street has revolved around the nine-thirty/four o’clock schedule for many, many years. Some believe that cutting this long-held schedule could make things harder for both brokers and clients. All of whom will have to adjust.
Traders Won’t Have Enough Time to Work
Also, some critics of the market-cutting proposal believe that traders won’t have enough time to work. Removing an hour from each side of the schedule, as most recommend, would leave stockbrokers with just five and a half hours per day to trade, or 27 and a half hour per week.
This information is sure to help those interested in the stock market and investing in forming an educated and intelligent opinion on the subject of reducing—or leaving—stock-trading hours.
Here’s to a healthy and prosperous market!