End of Day Volumes Expected to Continue to Grow

§ 01 Executive Snapshot

• What: End-of-day trading volumes in equity markets are expected to increase.
• Who: International Organization of Securities Commissions (IOSCO), IEX, Sam Stevens.
• Why it matters: The evolution of market liquidity and increased trading at day’s end may impact operational resilience and market efficiency.

§ 02 Key Developments

• IOSCO published a consultation on May 21, 2026, regarding market liquidity during trading hours.
• IEX ranks third for volume in the last 10 minutes of the trading day, handling 10% of exchange volume in single stocks priced $1 and above.
• Approximately half of total market volume occurs off-exchange, but this volume decreases significantly in the final minutes of trading.

§ 03 Strategic Context

• Historical trends indicate a growing concentration of trading activities at market close, impacting liquidity dynamics.
• The shift from off-exchange to on-exchange trading at the end of the day reflects changing market structures and participant behaviors.

§ 04 Strategic Implications

• Increased end-of-day trading may lead to heightened competition among exchanges to attract volume, influencing fee structures and liquidity offerings.
• Long-term operational challenges may arise for trading venues, including the need for enhanced cybersecurity and risk management strategies.

§ 05 Risks & Constraints

• Potential risks include reduced liquidity during continuous trading and heightened volatility around market close due to concentrated trading activities.
• Operational resilience challenges may emerge as trading patterns evolve, requiring venues to adapt rapidly to changing market conditions.

§ 06 Watchlist / Forward Signals

• Monitoring IOSCO's implementation of proposed good practices for preserving market integrity as trading patterns shift.
• Observing changes in trading volume dynamics and liquidity provision strategies among exchanges as they adapt to increased end-of-day trading activities.