It follows a move last fall by NYSE to extend its trading hours.
Nasdaq is looking to expand its trading hours to 24 hours per day, five days per week, Monday through Friday for the Nasdaq Stock Market. Currently, the market is open from 9:30 a.m. ET to 4:00 p.m. ET, Monday-Friday.
In a blog post on Friday, Nasdaq President Tal Cohen said the company has been in talks with regulators, market participants and other key stakeholders about the idea. According to MarketWatch, the company plans to officially file papers with the Securities and Exchange Commission (SEC) soon.
Nasdaq’s timeline for launch, pending approvals and alignment with industry providers, is the second half of 2026, said Cohen.
“From the open-outcry trading pits of the past to today’s real-time, globally interconnected electronic markets, investors and industry participants have greatly benefited from the modernization of markets,” Cohen wrote in the post. “Now, as the industry considers the growing interest in 24-hour trading, we stand at yet another pivotal moment – one that has the potential to broaden investor access, expand wealth-building opportunities, and redefine how markets function.”
Growing global interest in U.S. markets
Cohen said the rise of retail participation in investing globally, made simpler through online trading and technology advances, has transformed the global investment landscape.
“Wealth accumulation across major regional economies reduces barriers to accessing markets, and an ever-increasing appetite to share in global prosperity is driving investors to engage with U.S. markets more than ever before,” Cohen added.
Cohen noted that total foreign holdings of U.S. equities have increased 97% since 2019 to $17 trillion as of June 2024. Foreign investors are drawn by the depth of opportunities, the strong regulatory framework, and access to high-growth sectors such as technology and healthcare.
Case in point, more than 56 exchange-traded funds (ETFs) have launched in the last five years tracking the Nasdaq 100 Index. Of that total, 98% were introduced outside of the United States.
Thus, 24-hour trading would provide more opportunity for overseas investors to tap into U.S. markets.
“Attracting more investment to our markets presents a compelling opportunity for both the U.S. and global economy. It is therefore incumbent on us to enhance access for those operating across different time zones,” Cohen said.
This ambitious plan follows an announcement by the New York Stock Exchange (NYSE) last fall to expand its trading hours for the NYSE Arca Exchange. The NYSE Arca is the leading exchange for ETF trading.
NYSE filed with the SEC to have 22-hour trading per day, five days a week, Monday through Friday. Daily trading hours would go from 1:30 a.m. ET to 11:30 p.m. ET. The exchange would still be closed on weekends and holidays. The application is pending with the SEC.
With opportunities come challenges
With the opportunities that 24-hour trading could bring also comes challenges. Among them, liquidity would be significantly lower during overnight trading hours, so that could mean higher volatility and transaction costs. Further, corporate issuers are cautious about the idea of 24-hour trading, Cohen wrote.
“A recent Nasdaq survey of our listed companies indicated that around half of the respondents have reservations about expanding trading hours on exchanges, in particular as it relates to liquidity and corporate actions,” Cohen wrote. “While overnight trading occurs today without the oversight, transparency, and resilience that exchanges can bring, once exchanges choose to participate as trading venues, corporate issuers will expect a materially improved experience for their investors.”
Another challenge relates to the technology and infrastructure that underpins U.S. markets.
“The U.S. equities markets process millions of messages per second, and every incremental change – whether in trading rules or the guardrails that protect investors– requires seamless industry-wide coordination, thoughtful planning, testing, and coordinated implementation,” Cohen wrote. “A harmonized and aligned approach across all markets is key to avoiding operational complexity and ensuring a seamless customer experience.”
Cohen said Nasdaq is confident that it can meet these challenges and bring expanded trading to the market.
“The question is not whether we can build a market that operates 24/5, but how we do so in a way that strengthens investor confidence in U.S. capital markets today,” he said.
