Bob Diamond: The settlement window is closing as 24/7 trading opens up
Bob Diamond discusses the evolution of trading infrastructure from traditional methods to decentralized exchanges like Hyperliquid. This new platform allows for 24/7 trading and rapid settlement times, challenging the existing market structure. However, it also raises important regulatory questions that remain unresolved.
- ▪Hyperliquid is a decentralized exchange that processes billions in daily trading volume across various asset classes.
- ▪It allows trades to settle in under a second, compared to the traditional T+1 settlement cycle.
- ▪The platform has seen significant trading activity during market closures, demonstrating its role in real-time price discovery.
Opening excerpt (first ~120 words) tap to expand
When I started my career at Morgan Stanley in the early 1980s, trades were executed over landlines and settled with handwritten tickets. Over the following four decades, the industry built a system that is remarkably good at what it does within the constraints of its architecture: business hours, centralised clearing, regulated intermediaries, and settlement cycles that have shortened from five days to one. These were sensible design choices for that era. But they are design choices, not laws of nature.
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Excerpt limited to ~120 words for fair-use compliance. The full article is at Fortune.
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