NEW YORK : Nasdaq, one of the world’s largest stock exchanges and home to tech giants such as Apple, Amazon and Nvidia, plans to submit paperwork to the US Securities and Exchange Commission (SEC) on Monday to significantly extend its trading hours. The proposal would expand trading in stocks and exchange-traded products from the current 16 hours to 23 hours a day, five days a week.
The move reflects growing investor appetite for nonstop access to US markets, particularly from overseas investors. The US stock market now accounts for nearly two-thirds of global listed market value, while foreign holdings of US equities reached about $17 trillion last year, according to Nasdaq-compiled data.
Nasdaq’s filing marks its first official step toward rolling out round-the-clock trading. In March, Nasdaq President Tal Cohen said the exchange had begun discussions with regulators and was targeting a launch in the second half of 2026. Rival exchanges, including the New York Stock Exchange and Cboe Global Markets, have also announced plans to move towards round-the-clock stock trading.
Currently, Nasdaq operates three weekday sessions: a pre-market session from 4 a.m. to 9.30 a.m. Eastern Time, the regular session from 9.30 a.m. to 4 p.m., and a post-market session from 4 p.m. to 8 p.m. Under the proposed 23/5 model, Nasdaq would run two sessions. The day session would operate from 4 a.m. to 8 p.m., followed by a one-hour break for maintenance, testing and trade clearing. A night session would then run from 9 p.m. to 4 a.m. the following day.
The traditional opening bell at 9.30 a.m. and closing bell at 4 p.m. would remain part of the day session. Trades executed during the night session between 9 p.m. and midnight would be recorded as trades for the following trading day. Under the new structure, the trading week would begin on Sunday at 9 p.m. and conclude on Friday at 8 p.m. after the day session.
A successful shift to near-continuous trading depends on major infrastructure upgrades, including enhancements to the securities information processor that provides consolidated stock quotes. The US Depository Trust and Clearing Corporation, the market’s central clearing hub, is also expected to roll out nonstop clearing for stocks by the end of 2026.
Supporters argue that extended trading hours would allow investors, especially those outside the US, to respond more quickly to global developments that occur outside traditional market hours. However, major Wall Street banks have expressed caution, warning of potential risks such as lower liquidity, increased volatility and uncertain returns on investment.
While trading volumes during extended hours are typically far lower than during regular sessions, demand for overnight US stock trading has grown rapidly. At present, investors seeking 24/7 exposure rely largely on off-exchange venues and alternative trading systems such as Blue Ocean, Bruce ATS and OTC Moon.
The push marks a sharp break from tradition. Trading hours on major US exchanges date back more than a century, when deals were conducted in person on crowded trading floors. Despite the shift to electronic trading, market hours have remained largely unchanged for decades.
Earlier this year, Nasdaq also filed with US regulators to introduce trading in tokenised stocks, signalling its intent to capitalise on growing interest in tokenisation as crypto regulations ease under the Trump administration.
In a bid to offer near-continuous trading, Nasdaq is set to expand its trading hours to 23 hours daily, five days a week, by 2026. This initiative aims to cater to the increasing demand for nonstop market access, particularly from overseas investors, while raising concerns about liquidity and volatility among major Wall Street banks.