Key Takeaways
- • The Managed Funds Association, which represents hedge funds and private credit firms, sent a letter to US regulators on Tuesday urging the Trump administration to proceed slowly toward round-the-clock trading.
- • The group asked the SEC and the CFTC to first allow some exchanges to complete their planned transition before broader 24/7 trading is pursued.
- • The push for continuous trading raises operational, market-structure and risk-management questions for managers that trade across multiple venues.
Summary
The Managed Funds Association (MFA), a trade group representing hedge funds and private credit firms, sent a letter to US regulators on Tuesday calling on the Trump administration to move cautiously toward round-the-clock trading, according to Opalesque. The MFA asked the Securities and Exchange Commission and the Commodity Futures Trading Commission to first let certain exchanges complete their planned moves to extended trading hours before advancing a broader push to 24/7 trading.
The primary report does not provide further detail on the specific exchanges involved, the timeline of their planned transitions, or the regulators' response. Readers seeking the full text of the MFA's recommendations should refer to the original Opalesque article.
The request highlights the industry's concern that continuous trading would require significant changes to operations, settlement, and risk management for funds that rely on existing market schedules. Sequencing the rollout, as the MFA proposes, would allow exchanges and market participants to test infrastructure before a wider transition.
The primary report does not provide further detail on the specific exchanges involved, the timeline of their planned transitions, or the regulators' response. Readers seeking the full text of the MFA's recommendations should refer to the original Opalesque article.
The request highlights the industry's concern that continuous trading would require significant changes to operations, settlement, and risk management for funds that rely on existing market schedules. Sequencing the rollout, as the MFA proposes, would allow exchanges and market participants to test infrastructure before a wider transition.
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