Better Markets’ filed a Comment Letter to the Securities and Exchange Commission (SEC) in connection with an application filed by 24X National Exchange LLC (24X) to operate a trading platform 23 hours per day, seven days per week.

Why it Matters. Our economy, financial system, banks, and citizens are increasingly threatened by all kinds of risks, including those that stem from severe weather and other climate-related events. Investors, regulators, policymakers, and members of the public deserve to have the necessary information to understand banks’ exposure to these risks clearly and confidently.

What we said.The fact that the financial industry now uses gamification techniques to prompt retail investors to trade makes the possibility of an exchange that operates 24 hours a day all the more troubling. As we’ve seen with legalized sports betting, the combination of technology fueled by artificial intelligence that entices fans to place bets and the ability to place bets 24 hours a day has led to a gambling addiction crisis. It is easy to envision the financial industry using the same combination of inducements to trade and the ability to trade at any time to get retail investors hooked on trading, with potentially disastrous consequences.

Bottom Line.The SEC also must consider the consequences of trading taking place late at night when retail investors may be more inclined to engage in risky behavior and the ability to monitor the markets will be diminished. Retail investors trust the U.S. securities markets because they are well-regulated. But the approval of an exchange that operates around the clock would allow widespread trading when regulators would be literally asleep at the switch.

You can read the full comment letter here.