The 24-Hour Market: How Extended Trading is Reshaping Global Equity Markets

The financial markets are undergoing a seismic shift. For decades, the 9:30 a.m. to 4 p.m. ET trading window has been the cornerstone of U.S. equities. But as technology, investor demand, and global connectivity collide, that paradigm is fraying. By 2025, the rise of 24-hour trading is no longer a distant possibility—it is a reality in motion. Exchanges like Nasdaq, the New York Stock Exchange (NYSE), and even the London Stock Exchange Group (LSEG) are racing to redefine liquidity, investor behavior, and their own competitive positioning in a world where markets never sleep.

The Liquidity Paradox: More Access, Fewer Buyers

Extended trading hours promise to democratize access to markets, particularly for investors in the Asia-Pacific region, where U.S. equities are increasingly popular. The 24X National Exchange, for instance, plans to launch 23-hour trading in September 2025, targeting Asian investors who can trade during their local daytime hours. Similarly, the NYSE Arca's proposed 22-hour window (1:30 a.m. to 11:30 p.m. ET) and Nasdaq's 2026 goal of full 24-hour trading reflect a strategic pivot to capture this demand.

But liquidity is a double-edged sword. While extended hours could attract new participants, they also risk thinning order books during off-peak times. Current data shows that overnight trading accounts for less than 0.11% of total U.S. equity volume. Yet as exchanges like 24X and Cboe's EDGX expand their hours, the pressure to maintain liquidity will intensify. This raises critical questions: Can market makers and algorithms adapt to provide sufficient depth during 2 a.m. in New York? And what happens when a surge of retail investors—armed with smartphones and no regard for traditional hours—floods the market?

Investor Behavior: From Passive to Perpetual

The shift to 24-hour trading is not merely structural—it is behavioral. Retail investors, emboldened by zero-commission platforms and algorithmic tools, are no longer tethered to traditional hours. This has created a new breed of “always-on” trader, one who can react to news in Tokyo, London, or New York without waiting for the market to open.

For institutional investors, the implications are equally profound. Asset managers must now consider 24-hour liquidity when constructing portfolios, while hedge funds are developing strategies tailored to extended hours. The rise of “flash crashes” during low-liquidity periods, however, remains a looming risk. As one Cboe executive noted, “The market is getting faster, but it's also getting more fragile.”

LSEG's Strategic Crossroads

The London Stock Exchange Group (LSEG) finds itself at a pivotal juncture. As a global leader in market infrastructure, LSEG has long provided data, clearing, and index services to a world accustomed to traditional hours. But the rise of 24-hour trading demands more than just data—it requires a reimagining of settlement cycles, compliance frameworks, and risk management.

LSEG's strength lies in its ability to harmonize fragmented systems. Its FX data and analytics, for instance, are critical for firms navigating the complexities of global trading. With the U.S. moving to a T+1 settlement cycle in 2024, LSEG's clearinghouses, such as the National Securities Clearing Corporation (NSCC), will need to adapt to support extended trading hours. This could position LSEG as a key enabler for exchanges like 24X, which rely on robust post-trade infrastructure.

Moreover, LSEG's regulatory expertise is a competitive asset. As the SEC tightens rules on trade reporting and transparency, LSEG's compliance tools will become indispensable. The firm's recent foray into AI-driven risk management and real-time analytics further underscores its readiness to support a 24-hour ecosystem.

The Competitive Landscape: Exchanges as Infrastructure Providers

The battle for market share in 24-hour trading is not just about volume—it's about infrastructure. Exchanges like 24X, which leverage modern technology stacks, are forcing legacy players to modernize. The NYSE's Arca, for example, must compete not only with Nasdaq but also with upstarts offering faster, cheaper, and more flexible platforms.

For LSEG, the challenge is twofold: First, it must ensure its data and clearing services remain the backbone of global markets. Second, it must avoid being sidelined by tech-driven alternatives. This requires a delicate balance—innovating without alienating traditional clients, while staying ahead of disruptors.

Investment Implications: Opportunities and Risks

For investors, the rise of 24-hour trading presents both opportunities and risks. On one hand, it opens access to new markets and strategies. On the other, it introduces volatility and operational complexity.

• Opportunities:
• LSEG (LSEG.L): As a critical infrastructure provider, LSEG stands to benefit from the growth of 24-hour trading, particularly in clearing and data services. Its recent partnerships with exchanges like 24X signal a strategic pivot.
• Cboe (CBOE): Cboe's early leadership in extended trading (via EDGX) and its expertise in options markets make it a key player in the 24/7 ecosystem.

• DTCC: The Depository Trust & Clearing Corporation's expansion of NSCC's clearing hours positions it to capture a growing share of post-trade activity.

• Risks:

• Volatility: Thin liquidity during off-peak hours can exacerbate price swings.
• Regulatory Lag: The SEC and other regulators may struggle to keep pace with the speed of technological change.
• Operational Costs: Exchanges and clearinghouses face higher costs to maintain 24-hour operations, which could be passed on to investors.

Conclusion: The Future is Now

The 24-hour market is no longer a hypothetical—it is here, reshaping liquidity, investor behavior, and the competitive landscape. For exchanges like LSEG, the path forward lies in balancing innovation with stability, leveraging their infrastructure strengths to support a world where markets never sleep.

For investors, the lesson is clear: Adapt or be left behind. The future of global equity markets is not just about what you trade—but when, how, and with whom. As the clock ticks toward a 24/7 financial world, the winners will be those who embrace the chaos and turn it into opportunity.