Subject: File Number 4-913 - Comment of Amy Li, W-Axis Lab: 24-Hour Access Without a 24-Hour Protection Gap
From: Amy Li
Affiliation: Independent Researcher, W-Axis Lab

Jul. 23, 2026

July 23, 2026

Vanessa A. Countryman
Secretary
U.S. Securities and Exchange Commission
100 F Street, N.E.
Washington, D.C. 20549-1090

Re: File No. 4-913 - Roundtable on Preparations for 24-Hour Trading

Dear Ms. Countryman:

I appreciate the opportunity to comment on the Commission's September
17, 2026 Roundtable on Preparations for 24-Hour Trading. I support
broader, globally accessible trading hours, provided that the
transition is designed as a market-wide change in temporal market
structure - not merely as an extension of venue operating hours.

I submit this comment as an independent researcher focused on market
structure, AI-driven market behavior, and the control and interface
layers of financial infrastructure. W-Axis Lab is an independent
research initiative, and the views expressed here are my own. I do not
represent an exchange, broker-dealer, issuer, or other market
intermediary.

The central principle is straightforward: clock time should not
determine the quality of investor protection. A near-continuous market
should provide time-zone-neutral access, but it should also provide
time-zone-neutral transparency, surveillance, execution quality,
operational resilience, and accountability.

24-HOUR ACCESS WITHOUT A 24-HOUR PROTECTION GAP

A near-continuous market is not merely a longer trading day. It is a
new temporal market structure in which liquidity, price discovery,
supervision, reference data, corporate actions, customer support, and
increasingly automated order flow may function differently across the
clock. The Commission should therefore treat time as a first-class
dimension of market structure.

I respectfully recommend that the Commission organize its work around
the following eight priorities.

1. Establish a Minimum Viable National Market System for overnight trading.

National securities exchanges should not commence broad overnight
sessions until the essential national-market-system components can
operate on a coordinated basis. The readiness matrix should include
the securities information processors, the Consolidated Audit Trail,
FINRA trade-reporting facilities, NSCC clearing and risk management,
limit-up/limit-down protections, clearly erroneous trade rules,
trading halts and resumptions, corporate-action and reference-data
processes, and market-wide incident communications.

A collection of venues can remain technically open while the national
market system is only partially present. That distinction is most
dangerous when investors assume that the protections and information
environment of the regular session continue unchanged overnight.

2. Create a temporal best-execution and market-quality framework.

Execution quality should be evaluated separately for overnight,
pre-market, regular-hours, and post-market sessions. Blended monthly
statistics may conceal material differences in effective spreads,
realized spreads, executable depth, price improvement, routing
competition, fill and rejection rates, outages, and clearly erroneous
trade outcomes.

The Commission should consider session-specific Rule 605 and Rule 606
reporting, or parallel disclosures, so that customers and regulators
can determine whether the quality of execution materially changes by
time of day.

3. Require dynamic, decision-useful retail context.

Static extended-hours warnings are not sufficient for a market that
may be available nearly continuously. At the point of order entry,
retail investors should receive concise information regarding the
current spread, visible depth, status of the consolidated reference
price, scope of accessible venues, applicable overnight price-band
regime, and whether the security's liquidity is materially thinner
than during the regular session.

The objective is not disclosure volume. It is decision quality.
Interface design should not make a materially different market appear
identical merely because the same order ticket is used.

4. Build an information-parity and corporate-actions protocol.

In a near-continuous market, the phrase "after the close" loses much
of its operational meaning. The Commission and the self-regulatory
organizations should establish coordinated protocols for material
issuer announcements, earnings releases, mergers, bankruptcies,
regulatory decisions, cyber incidents, trading halts, resumptions,
symbol and reference-data changes, dividends, splits, ETF net asset
values and baskets, and index events.

The industry also needs a common definition of trade date, business
date, and effective time across exchanges, broker-dealers, clearing
agencies, transfer agents, issuers, and data vendors. A disciplined
daily maintenance and reference-data boundary remains necessary even
in a 23x5 market.

5. Stress-test automated and AI-mediated order flow.

The thinnest periods of the day may become increasingly dependent on
automated market makers, algorithmic routers, portfolio agents, and
AI-assisted trading systems. Firms should test scenarios involving
common-model reactions, stale or erroneous data, third-party model or
cloud outages, vendor concentration, runaway order generation,
synchronized liquidity withdrawal, and conflicts or delays in
kill-switch authority.

The Commission need not require public identification of every
automated order. It should, however, ensure that regulated entities
retain sufficient non-public information to reconstruct material
automated activity and determine whether correlated machine behavior
contributed to a disorderly event.

Operational resilience should also be evaluated as a follow-the-sun
control problem. Responsibility may move among regional teams while
the market remains open. The Commission should ask who has immediate
authority to intervene, whether the responsible team has access to the
full surveillance and risk context, and how accountability is
preserved across handoffs.

6. Coordinate cross-asset and funding-market readiness.

Continuous equity prices affect options, securities lending, margin,
collateral, ETF creation and redemption, structured products, and
portfolio-risk systems. The Commission should examine whether options
market makers and clearing members can hedge and finance overnight
moves reliably; whether securities-borrow and locate processes operate
across the same window; how ETF arbitrage functions when underlying or
foreign markets are closed; and whether clearly erroneous and bust
policies are coordinated across cash and derivative markets.

A long equity session should not create risk transfers into markets
whose operating hours, liquidity, or error-correction mechanisms
remain misaligned.

7. Use phased security eligibility and a reversible pilot.

Initial overnight eligibility should favor highly liquid NMS
securities and diversified ETFs that meet objective standards for
spreads, depth, market-maker participation, consolidated data,
price-band operation, operational readiness, and corporate-action
simplicity.

Expansion should depend on demonstrated market quality rather than
commercial demand alone. If spreads, error rates, manipulation alerts,
outages, customer-harm indicators, or concentration metrics exceed
predetermined thresholds, the Commission and the SROs should be able
to narrow eligibility, modify protections, or pause expansion without
disrupting the regular session.

8. Publish a recurring temporal market-quality dashboard.

A public dashboard should compare sessions using, at minimum: quoted
and effective spreads; displayed and executable depth; price impact;
price improvement; volume and venue concentration; active
liquidity-provider counts; fill, rejection, cancellation, and timeout
rates; outages and recovery time; clearly erroneous trades; price-band
and halt events; CAT and TRF exceptions; corporate-action and
reference-data errors; customer complaints;
retail-versus-institutional execution differences where measurable;
cross-asset disruptions; and material automated-order interventions
available to regulators.

The dashboard should be segmented by security type, venue, and time
band. The success test should not be whether systems remain open. It
should be whether reliable prices, comparable protections, effective
surveillance, and accountable operations remain active whenever the
market is open.

QUESTIONS THE ROUNDTABLE SHOULD PUT ON THE RECORD

1. What minimum set of SIP, CAT, TRF, clearing, LULD,
corporate-action, and reference-data capabilities must be
simultaneously operational before an exchange opens overnight?

2. What is the authoritative definition of trade date, business date,
and effective time across exchanges, brokers, clearing agencies,
transfer agents, and issuers?

3. Should Rule 605 and Rule 606 reporting, or parallel disclosures, be
segmented by overnight and other extended-hours sessions?

4. What point-of-trade information would materially improve retail
decisions without creating disclosure overload?

5. How should material issuer announcements, halts, and resumptions
operate when there is no meaningful after-hours period?

6. What common maintenance window and reference-data process is
required to prevent symbol, corporate-action, and pricing errors?

7. How should the Commission test correlated automated or AI-mediated
behavior, third-party concentration, and autonomous order generation?

8. How should equity overnight trading interact with options,
securities lending, margin, collateral, ETF arbitrage, and
foreign-market hours?

9. Which objective eligibility and exit criteria should govern a phased pilot?

10. What public dashboard will allow investors and the Commission to
determine whether overnight access is improving market quality or
merely redistributing liquidity and risk?

CONCLUSION

The United States has an opportunity to make its equity markets more
globally accessible while extending the institutional strengths that
make those markets trusted. The transition should not be judged solely
by whether trading systems remain available. It should be judged by
whether investors retain reliable prices, comparable execution
protections, effective surveillance, accountable operations, and a
coherent national market system at every hour the market is open.

Twenty-four-hour access should not produce a twenty-four-hour
protection gap. The Commission can avoid that outcome by treating time
as a first-class dimension of market structure and by requiring a
coordinated, measurable, and reversible transition.

Respectfully submitted,

Amy Li
Independent Researcher, W-Axis Lab
New York, New York
control-layers.pages.dev

Selected primary materials considered include the Commission's July
23, 2026 announcement for File No. 4-913; speeches by Division of
Trading and Markets Director Jamie Selway concerning shared
infrastructure and 23x5 readiness; DTCC's June 29, 2026 implementation
of extended NSCC clearing hours; FINRA's 2026 Annual Regulatory
Oversight Report and Regulatory Notices 25-15 and 26-07; the
Commission's approvals and NMS actions concerning Nasdaq extended
trading and overnight price-band protections; and public comment
letters submitted by IEX, SIFMA, Better Markets, and Professor
Haoxiang Zhu in the related extended-hours market-structure record.