Nasdaq Pushes for 23-Hour Trading to Fuel Global Access

Nasdaq Inc. has filed a request with the U.S. Securities and Exchange Commission for approval to extend trading hours on its stock venues to 23 hours during the workweek according to reports. The proposed addition includes a night trading session from 9 p.m. to 4 a.m. ET, on top of its existing pre-market, regular, and post-market hours. Nasdaq aims to meet the growing global demand for U.S. equities and to provide investors access on their terms and in their time zones.

The move is part of a broader trend among U.S. exchanges to expand trading hours beyond traditional 9:30 a.m. to 4 p.m. ET sessions as market data shows. Nasdaq is among several exchanges pushing for round-the-clock trading, including the New York Stock Exchange, which recently received initial approval for a 22-hour trading day. The expansion seeks to allow investors, particularly international ones, to react to market-moving events and trade outside of typical U.S. business hours according to market analysis.

The proposed 23-hour trading day would operate five days a week, with two trading sessions separated by a one-hour break as reported by financial analysts. The first session would run from 4 a.m. to 8 p.m., followed by a break for maintenance and clearing, then a second session from 9 p.m. to 4 a.m. the next day according to exchange officials. This format aims to balance continuous access with necessary operational pauses for clearing and system testing as noted in industry reports.

Why the Standoff Happened

The push for 24/7 trading is driven by the increasing globalization of U.S. equities markets, which now account for nearly two-thirds of the market value of listed companies globally according to market research. Nasdaq noted that total foreign holdings of U.S. equities reached $17 trillion last year, underscoring the demand for extended access as financial data shows. As more investors outside the U.S. seek exposure to American markets, the traditional 6.5-hour trading day is seen as insufficient according to industry analysis.

Nasdaq President Tal Cohen has indicated that the exchange has already begun discussions with regulators and expects to launch 24/7 trading in the second half of 2026 according to company statements. However, the plan depends on regulatory approval and coordination with industry partners, including the Depository Trust & Clearing Corp. (DTCC), which is scheduled to begin 24/7 clearing of trades by mid-2026 as reported by financial sources. These interdependencies highlight the complexity of scaling up to continuous trading according to market experts.

How Markets Reacted

The concept of extended trading has already taken root in certain market segments. During the pandemic, firms like Robinhood Markets Inc. and Interactive Brokers Group Inc. enabled customers to trade U.S. stocks 24/7 on off-exchange platforms like Blue Ocean's alternative-trading system as market data indicates. While most trading still occurs during regular hours, the demand for extended access has grown significantly according to financial analysis.

Proponents argue that 24/7 trading will benefit global investors by allowing them to react to news and events in real time, regardless of U.S. market hours as noted in industry reports. However, critics warn that extended hours may lead to lower liquidity, increased volatility, and less predictable returns according to market analysis. Institutional investors, in particular, may be hesitant to trade outside the high-traffic periods around the opening and closing bells according to financial reports.

What This Means for Investors

For individual investors, the expansion of trading hours could mean greater flexibility to buy and sell stocks based on personal time zones or major global events as reported by market analysts. However, the impact on liquidity and price discovery remains a point of debate. Lower volume during off-peak hours could make it harder to execute trades at favorable prices according to financial data.

Nasdaq has emphasized that its systems are designed to handle increased traffic and market stress, ensuring resilience during volatile periods as stated by exchange officials. Nonetheless, investors must weigh the potential benefits of extended access against the risks of reduced liquidity and higher volatility according to market experts. As Nasdaq and other exchanges move forward with their proposals, the SEC's approval and the broader industry's alignment will be critical to the success of this transformation according to industry reports.