WFE Webinar
WFE Webinar: Is 24/7 Trading Better?
Date:March 25, 2025 Time:13:00-14:00 UTC
Summary: Dr. Patrick Blonien from Carnegie Mellon University will present his research paper, “Is 24/7 Trading Better?” co-authored with Alexander Ober from Rice University.
Paper abstract:
In a dynamic model of large traders who manage inventory risk, we show that a market closure coordinates liquidity, which can be substantial enough to improve allocative efficiency relative to a market open 24/7, even though trade cannot occur during the closure. If traders have heterogeneous information about the asset value, trade is less aggressive on the whole, but closure can still improve welfare. The improvement in welfare due to closure applies to small markets with infrequent shocks, whereas large markets would benefit from extending trading hours, which has implications for the ongoing debates on a 24/7 market design.
Format: There will be a 45 min conversation followed by an audience Q&A.
This is an open event. Feel free to share with colleagues inside your organisation who may be interested.
Kaitao joined the World Federation of Exchanges in May 2020 and currently holds the position of senior financial economist in the Research Team. Kaitao holds a Ph.D. in Finance from the University of Houston and is a Chartered Financial Ana-lyst® (CFA®) charterholder. His research focuses on market microstructure issues, such as trading rules, their effects on market participants, and market quality. His current work includes ESG and crypto assets. Kaitao’s papers have been accepted for publication in well-regarded academic journals, such as the Quarterly Journal of Finance, and presented in various international conferences, including the U.S. SEC Ph.D. Symposium, the China International Conference in Finance, and the Financial Management Association Annual Meeting.
Patrick Blonien is an Instructor of Finance at the Tepper School of Business at Carnegie Mellon University. He earned his Ph.D. in Finance at Rice University in 2024 and holds a B.B.A. in Business Fellows with secondary majors in Finance and Mathematics and a minor in Statistics from Baylor University in 2018. His solo work has received several accolades, including The Brattle Group Ph.D. Candidate Award for Outstanding Research in 2023, the Finance Theory Group Summer School Best Paper Award (ex aequo) in 2023, and Runner-up for the Finance Theory Group Best Paper Award on the Job Market in 2024. His primary research area is financial market design, with work on the role of occasionally occurring fixed-price trading sessions and the effects of market closures in the electronic era. Additionally, his secondary research agenda uses structural models to quantify the quality and extent of information in voting and trading.
