Nasdaq wins SEC approval for 23-hour trading schedule
Nasdaq (NDAQ) has received approval from the U.S. Securities and Exchange Commission to launch a 23-hour trading schedule on Dec. 6, 2026, according to its first-quarter 2026 financial report and regulatory filings cited in a recent report. Under the plan, U.S. stock markets would close for just one hour each day—from 8 p.m. to 9 p.m. Eastern time—for system settlement and data processing, with trading open during the other 23 hours. The plan would extend Nasdaq's current 16-hour trading day by adding a session from 9 p.m. to 4 a.m. Eastern time. Nasdaq said the move would be its first step toward five-day-a-week, around-the-clock trading. Nasdaq currently operates three trading sessions from Monday through Friday, with after-hours trading ending at 8 p.m. Eastern time. Under the new schedule, the trading week would begin at 9 p.m. Sunday and end at 8 p.m. Friday. The exchange plans to consolidate the schedule into two sessions: a daytime session from 4 a.m. to 8 p.m., followed by a one-hour break for system maintenance, testing and trade settlement, and an overnight session from 9 p.m. to 4 a.m. the following day. The daytime session would continue to include premarket, regular and after-hours trading. Regular trading would open at 9:30 a.m. and close at 4 p.m. Trades executed between 9 p.m. and midnight during the overnight session would be treated as trades for the following day. Demand for continuous U.S. stock trading has surged in recent years, prompting regulators to issue new rules and approve proposals from major exchanges to allow trading outside normal hours. U.S. equities account for nearly two-thirds of the total market value of publicly listed companies worldwide. Data compiled by Nasdaq showed that foreign investors held $17 trillion of U.S. stocks last year. Chuck Mack, Nasdaq's senior vice president of North American markets, said in an emailed statement that the change reflected a simple reality: Global investors want to invest on their own terms and in their own time zones without compromising trust or market integrity. Mack said trading volume during extended sessions is typically far below that of regular hours, but demand for overnight trading in U.S. stocks has been unusually strong. "We are seeing these trends reflected in the U.S. stock market, with demand from investors outside the United States for Nasdaq-listed companies stronger than ever before," Mack said. "Think of the investors around the world who want to access this massive market on their own terms and in their own time zones." Nasdaq President Tal Cohen (COHN) has said the exchange had begun discussions with regulators and expected to introduce five-day-a-week continuous trading in the second half of 2026. Other exchanges are also developing plans to extend trading hours. The New York Stock Exchange, for example, plans to offer 22 hours of trading on weekdays. That proposal received preliminary SEC approval in February but still requires updates from market-data providers. Kerry Craig, a global markets strategist at JPMorgan (JPM) based in Melbourne, said the change could attract more retail investors from different markets around the world. U.S. markets' regular hours have remained fixed since 1985, running from 9:30 a.m. to 4 p.m. Eastern time Monday through Friday. Although major U.S. exchanges have offered premarket and after-hours sessions for years, Nasdaq's plan would significantly disrupt that traditional trading-hours framework. The prospect of extended stock trading has divided Wall Street. Supporters say U.S. and overseas investors want to trade and respond to developments outside regular market hours. Opponents warn that lower volume could reduce execution quality and make prices less precise. A recent Nasdaq survey of listed companies found that about half of respondents remained cautious about longer exchange hours. Their main concerns were market liquidity and the effects of company announcements or other corporate actions. Although overnight trading currently takes place without the level of exchange oversight and transparency provided by an exchange, market participants will expect a better trading experience if major exchanges move toward "24-hour trading." Bai Wenxi, chief economist at IPG, said 24-hour trading would give investors more flexibility, particularly outside traditional market hours. Asian investors, for example, could trade U.S. stocks during the day without staying up overnight. He also said longer hours could reduce information asymmetry by allowing investors to respond quickly to breaking events or major news outside traditional trading hours, reducing risks associated with delayed information. Bai also cautioned that lower liquidity during nontraditional hours could increase price volatility and trading costs. Investors would need to monitor markets more closely and be prepared to respond to changes, potentially increasing the pressure involved in investment decisions. "Overnight trading settlement and monitoring require more efficient solutions, which poses a challenge to the operational capabilities of the financial-services industry," Bai said. He added that 24-hour trading presents technical difficulties but also creates opportunities for technological innovation and market development.
Under the plan, U.S. stock markets would close for just one hour each day—from 8 p.m. to 9 p.m. Eastern time—for system settlement and data processing, with trading open during the other 23 hours.
The plan would extend Nasdaq's current 16-hour trading day by adding a session from 9 p.m. to 4 a.m. Eastern time. Nasdaq said the move would be its first step toward five-day-a-week, around-the-clock trading.
Nasdaq currently operates three trading sessions from Monday through Friday, with after-hours trading ending at 8 p.m. Eastern time. Under the new schedule, the trading week would begin at 9 p.m. Sunday and end at 8 p.m. Friday. The exchange plans to consolidate the schedule into two sessions: a daytime session from 4 a.m. to 8 p.m., followed by a one-hour break for system maintenance, testing and trade settlement, and an overnight session from 9 p.m. to 4 a.m. the following day.
The daytime session would continue to include premarket, regular and after-hours trading. Regular trading would open at 9:30 a.m. and close at 4 p.m. Trades executed between 9 p.m. and midnight during the overnight session would be treated as trades for the following day.
Demand for continuous U.S. stock trading has surged in recent years, prompting regulators to issue new rules and approve proposals from major exchanges to allow trading outside normal hours. U.S. equities account for nearly two-thirds of the total market value of publicly listed companies worldwide. Data compiled by Nasdaq showed that foreign investors held $17 trillion of U.S. stocks last year.
Chuck Mack, Nasdaq's senior vice president of North American markets, said in an emailed statement that the change reflected a simple reality: Global investors want to invest on their own terms and in their own time zones without compromising trust or market integrity.
Mack said trading volume during extended sessions is typically far below that of regular hours, but demand for overnight trading in U.S. stocks has been unusually strong.
"We are seeing these trends reflected in the U.S. stock market, with demand from investors outside the United States for Nasdaq-listed companies stronger than ever before," Mack said. "Think of the investors around the world who want to access this massive market on their own terms and in their own time zones."
Nasdaq President Tal Cohen (COHN) has said the exchange had begun discussions with regulators and expected to introduce five-day-a-week continuous trading in the second half of 2026. Other exchanges are also developing plans to extend trading hours. The New York Stock Exchange, for example, plans to offer 22 hours of trading on weekdays. That proposal received preliminary SEC approval in February but still requires updates from market-data providers.
Kerry Craig, a global markets strategist at JPMorgan (JPM) based in Melbourne, said the change could attract more retail investors from different markets around the world.
U.S. markets' regular hours have remained fixed since 1985, running from 9:30 a.m. to 4 p.m. Eastern time Monday through Friday. Although major U.S. exchanges have offered premarket and after-hours sessions for years, Nasdaq's plan would significantly disrupt that traditional trading-hours framework.
The prospect of extended stock trading has divided Wall Street. Supporters say U.S. and overseas investors want to trade and respond to developments outside regular market hours. Opponents warn that lower volume could reduce execution quality and make prices less precise.
A recent Nasdaq survey of listed companies found that about half of respondents remained cautious about longer exchange hours. Their main concerns were market liquidity and the effects of company announcements or other corporate actions. Although overnight trading currently takes place without the level of exchange oversight and transparency provided by an exchange, market participants will expect a better trading experience if major exchanges move toward "24-hour trading."
Bai Wenxi, chief economist at IPG, said 24-hour trading would give investors more flexibility, particularly outside traditional market hours. Asian investors, for example, could trade U.S. stocks during the day without staying up overnight. He also said longer hours could reduce information asymmetry by allowing investors to respond quickly to breaking events or major news outside traditional trading hours, reducing risks associated with delayed information.
Bai also cautioned that lower liquidity during nontraditional hours could increase price volatility and trading costs. Investors would need to monitor markets more closely and be prepared to respond to changes, potentially increasing the pressure involved in investment decisions. "Overnight trading settlement and monitoring require more efficient solutions, which poses a challenge to the operational capabilities of the financial-services industry," Bai said. He added that 24-hour trading presents technical difficulties but also creates opportunities for technological innovation and market development.