Extended trading will run from 1:30 a.m. ET to 11:30 p.m. ET, five days per week.
In a historic move, the New York Stock Exchange (NYSE) announced on Friday that it is planning to extend trading hours for its NYSE Arca stock exchange to 22 hours per day.
The fully electronic NYSE Arca exchange is primarily known as the leading exchange for exchange-traded funds (ETFs) and products, including the spot Bitcoin and spot Ethereum ETFs. But investors can also trade some 8,000 stocks on the NYSE Arca exchange.
This change, subject to approval by the Securities & Exchange Commission (SEC), would make trading available for ETFs and all stocks on the exchange from 1:30 a.m. ET to 11:30 p.m. ET, five days a week, on weekdays. There would still be no trading on weekends or federal holidays.
Meet global demand
Currently, markets are open from 9:30 a.m. ET to 4:00 p.m. ET, with extended hours starting at 4:00 a.m. ET and running until 8:00 p.m. ET.
“The NYSE’s initiative to extend U.S. equity trading to 22 hours a day, 5 days a week underscores the strength of our U.S. capital markets and growing demand for our listed securities around the world,” Kevin Tyrrell, head of markets at the New York Stock Exchange, said. “As the steward of the U.S. capital markets, the NYSE is pleased to lead the way in enabling exchange-based trading for our U.S.-listed companies and funds to investors in time zones across the globe.”
Trades that occur within these new extended hours will continue to be cleared by the Depository Trust & Clearing Corporation, which will extend its hours of operation to accommodate this change.
Pending SEC approval
NYSE officials said they plan to file updated rules with the SEC for the extended trading.
The move comes as demand for extended trading increases. Crypto investments currently trade 24 hours per day, seven days per week. Also, online brokerage Robinhood also has 24-hour trading from Sunday night at 8:00 p.m. ET until Friday night at 8:00 p.m. ET for select stocks and ETFs.
It will also allow NYSE Arca, which is owned by Intercontinental Exchange (NYSE:ICE), to meet the rising global demand for U.S. stocks and ETFs.
It also comes at a time when a new rival exchange, the Texas Stock Exchange, is gearing up to compete in this space. The TXSE is expected to launch in 2025 and it is looking to become “the premier venue to list and trade public companies and the growing universe of exchange-traded products.”
