NYSE Arca to Expand Trading to 22 Hours Amid Growing Demand for 24/7 Markets

On October 25, the New York Stock Exchange announced plans to extend trading hours for its all-electronic NYSE Arca to 22 hours per day, pending regulatory approval. This applies to all U.S.-listed stocks, ETFs, and closed-end funds, with trading starting at 1:30 a.m. and ending at 11:30 p.m. Eastern Time.

Currently, NYSE operates from 4 a.m. to 8 p.m. Eastern Time, with peak trading between 9:30 a.m. and 4 p.m. The move aligns with a growing interest in around-the-clock trading. Previously, Robinhood launched “24/5 trading,” and global crypto markets already trade 24/7.

NYSE Arca plays a critical role in global finance, facilitating ETF and U.S. securities trades totaling approximately $277 billion and $218 billion daily, respectively. NYSE's market head remarked that this extension highlights the U.S. market's strength and increasing demand for U.S.-listed securities. The settlement of extended trades will be handled by the Depository Trust & Clearing Corporation.

Analysts note that assets such as U.S. Treasuries, currencies, stock futures, and cryptocurrencies can already be traded outside normal hours, creating pressure for NYSE to consider longer hours. This change will benefit traders across time zones but may require firms to bolster morning and evening operations. Additionally, extended trading may lead to greater price swings, offering traders more opportunities.

The announcement did not cause significant market fluctuations. On the same night, the Dow fell 0.61%, the Nasdaq rose 0.56%, and the S&P 500 dipped slightly by 0.03%. Tech giants saw gains, with Nvidia's stock rising 2.6%, briefly surpassing Apple as the most valuable company. As the market remains in a watchful state ahead of the U.S. presidential election and key economic data, upcoming tech earnings could impact the market significantly.