The Rise of 24/7 Trading and Its Implications for Market Structure and Liquidity Providers

The financial markets are undergoing a seismic shift as 24/7 trading becomes increasingly viable, driven by technological innovation and evolving investor expectations. This transformation is reshaping market structure, liquidity dynamics, and the competitive landscape between institutional players and tech-native platforms. Institutional liquidity providers like Virtu Financial and traditional banks are adapting to extended trading hours through advanced algorithmic strategies and AI-driven execution, while platforms such as Robinhood are leveraging blockchain and tokenization to redefine accessibility. This analysis examines how these forces are converging to redefine liquidity provision and market efficiency in 2025 and beyond.

Institutional Adaptation: Virtu Financial's AI-Driven Edge

Virtu Financial has emerged as a leader in algorithmic trading, with its Virtu Triton execution management system setting benchmarks for low-latency execution and smart routing. In 2025, the firm's strategies have been recognized for their ability to optimize order routing across global markets, particularly in North America and Europe. By integrating artificial intelligence (AI) and machine learning, Virtu has enhanced its capacity to predict liquidity shifts and execute trades with minimal slippage, a critical advantage in 24/7 environments where market conditions can fluctuate rapidly.

The broader algorithmic trading market is projected to grow significantly, fueled by AI's role in reducing latency and improving execution speeds. Virtu's focus on scalability positions it to capitalize on emerging opportunities in cryptocurrency and other digital assets, where 24/7 trading is already the norm. As one of the largest liquidity providers in equities and derivatives, Virtu's ability to adapt its AI-driven infrastructure to extended hours underscores its strategic alignment with the future of market structure.

Traditional Banks vs. Tech-Native Platforms: A Clash of Paradigms

Traditional banks and exchanges, historically constrained by rigid operating hours, are incrementally extending trading windows to compete with fintech disruptors. For instance, Nasdaq has proposed a 23-hour trading model, expanding its current 6.5-hour window to accommodate global demand from Asian and European investors. This approach, however, relies on institutional liquidity and regulatory alignment, which critics argue may exacerbate volatility during low-liquidity periods.

In contrast, Robinhood has adopted a radical approach by tokenizing stocks and ETFs on blockchain networks like Arbitrum, enabling 24/5 trading for European users and hinting at broader U.S. applications. Robinhood's Q3 2025 financials reveal a doubling of total net revenue to $1.27 billion, driven by surging crypto and options trading volumes. The platform's mobile-first design and commission-free model have resonated with younger, digitally native investors, who now expect trading access akin to crypto markets. Robinhood's CEO, Vlad Tenev, has openly declared that "traditional 9-to-5 trading will become obsolete", drawing parallels to the shift from desktop to mobile trading in the 2000s.

The Role of AI in Liquidity Provision and Market Efficiency

AI is becoming a cornerstone of liquidity provision, enabling both institutional and retail players to navigate 24/7 markets. For Virtu, AI-powered algorithms dynamically adjust to real-time data, ensuring optimal execution in fragmented markets. Meanwhile, AI-enhanced trading venues are expected to improve market efficiency by 2026, offering predictive analytics and automated risk management tools. These advancements are particularly critical in 24/7 environments, where liquidity can dry up during off-peak hours.

However, the reliance on AI introduces new risks. Market volatility during low-liquidity periods-exacerbated by algorithmic "herding" behaviors-could destabilize extended trading models. Regulators are already scrutinizing these dynamics, with the SEC's approval of Nasdaq's 23-hour proposal contingent on safeguards to prevent systemic risks.

Structural Shifts and Competitive Dynamics

The rise of 24/7 trading is accelerating a structural shift in market liquidity. Traditional banks, once dominant in liquidity provision, are now playing catch-up as fintech platforms redefine accessibility. Robinhood's tokenization strategy, for example, bypasses institutional gatekeepers by creating decentralized liquidity pools, a model that challenges legacy infrastructure. Meanwhile, Virtu's institutional-grade AI solutions cater to a different segment of the market, offering sophisticated tools for professional traders and asset managers.

This bifurcation highlights a broader trend: the coexistence of institutional-grade 24/7 execution and retail-focused tokenized markets. While Virtu and Nasdaq focus on enhancing existing market structures, Robinhood and blockchain-based platforms are building parallel ecosystems. This duality could lead to fragmented liquidity pools, complicating price discovery and regulatory oversight.

Conclusion: Navigating the New Normal

The rise of 24/7 trading is not merely a technological upgrade but a fundamental reimagining of market structure. Institutional players like Virtu Financial are leveraging AI to maintain their edge in liquidity provision, while traditional banks grapple with the need to digitize at scale. Meanwhile, tech-native platforms like Robinhood are democratizing access, albeit with regulatory and systemic risks.

For investors, the implications are clear: liquidity providers must balance innovation with stability, and market participants must adapt to a landscape where trading hours are no longer a constraint but a competitive advantage. As AI and blockchain continue to converge, the next frontier of financial markets will be defined by those who can harmonize speed, scalability, and resilience.