Nasdaq is preparing to take a major step toward round-the-clock equity trading, as Wall Street accelerates plans to meet surging global demand for U.S. stocks, according to a Reuters exclusive.
The exchange operator said it will submit paperwork to the U.S. Securities and Exchange Commission seeking approval to extend weekday trading hours to 23 hours a day, five days a week. The move would mark Nasdaq’s first formal step toward near-continuous trading, with the exchange targeting a launch in the second half of 2026, following earlier discussions with regulators.
- Nasdaq’s proposal would expand trading from the current 16 hours to a 23-hour structure, split into two sessions. The day session would run from 4 a.m. to 8 p.m. Eastern time, incorporating pre-market, regular trading hours and post-market activity, including the traditional opening and closing bells.
- A night session would then operate from 9 p.m. to 4 a.m., following a one-hour break for maintenance and clearing. Under the plan, trades executed late at night would be recorded as next-day activity, and the trading week would begin on Sunday evening.
The initiative comes as rival exchanges, including the New York Stock Exchange and Cboe Global Markets, have also announced plans to move toward round-the-clock trading. Proponents argue that extended hours would allow investors, particularly those outside the U.S., to respond more quickly to geopolitical events, macroeconomic developments and earnings news that occur outside standard U.S. market hours.
Nasdaq executives said demand for overnight trading has already surged, with investors increasingly using alternative trading systems and off-exchange venues to access U.S. equities. However, major Wall Street banks have expressed caution, warning that lower liquidity, higher volatility and uncertain returns could limit the benefits of nonstop trading.
The success of Nasdaq’s plan will also depend on infrastructure upgrades, including enhancements to the securities information processor and the rollout of 24/7 clearing by the Depository Trust and Clearing Corporation, expected by the end of 2026
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If you are tempted to trade 23/5 … while extended trading hours could boost global participation in U.S. equities, the obvious risks include thinner liquidity and higher volatility during overnight sessions, potentially reshaping intraday pricing dynamics.
This article was written by Eamonn Sheridan at investinglive.com.