Sound On 📢 @Nasdaq is bringing 24-hour trading to the Nasdaq Stock Market. Learn more from @Nasdaq's President Tal Cohen: https://t.co/fY1yHTNpXa pic.twitter.com/nacYfZ1nrP

— Nasdaq (@Nasdaq) March 7, 2025

The Markets Never Sleep, Should Trading?

By Tal Cohen, president at Nasdaq

Throughout history, financial markets have strived to keep pace with technological advancements and evolving industry needs. 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.

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.

We are excited to share that Nasdaq has begun engaging with regulators, market participants and other key stakeholders, with a view of enabling 24-hour trading five days a week on the Nasdaq Stock Market.

Our timeline is pending regulatory approval and alignment with critical industry infrastructure providers, which we anticipate being in the second half of 2026.

Why Are We Making this Change?

The rise of retail participation has greatly 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.

Total foreign holdings of U.S. equities reached $17 trillion as of June 2024, a 97% increase since 2019. In the APAC region, investors are increasingly turning their attention to U.S. markets, drawn by the depth of opportunities, strong regulatory framework and access to high-growth sectors such as technology and healthcare. With rising financial literacy and proliferation of digital trading platforms, these investors have become more sophisticated leveraging a diverse range of strategies, such as investing in options and ETFs. For example, over 56 exchange traded products have launched in the last five years tracking the Nasdaq-100 Index, and 98% of these products were introduced outside of the United States.

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.

Careful and Deliberate Planning is Vital

While the promise of round-the-clock trading can further democratize markets, it also demands careful and deliberate planning. Liquidity, transparency and integrity remain the lifeblood of vibrant markets, and any structural change must uphold these principles. While trading activities beyond the traditional hours have increased in recent years through off-exchange venues, such as Alternative Trading Systems (ATSs) and broker-dealer platforms, liquidity remains significantly lower during these hours. Therefore, the trading and investing environment during the overnight trading hours include higher volatility and transaction costs.

It is important to note that while global investor interest in the U.S. markets continues to grow, corporate issuers remain cautious about the idea of 24-hour trading. 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. 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. It is important for all of us in the industry to consider carefully and account for issuers’ concerns if 24-hour trading is to be successful over the long term.

Another crucial consideration is the proven and tested infrastructure that underpins U.S. markets. While not always in the spotlight, the technology powering our markets stands as an impressive achievement. 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. A harmonized and aligned approach across all markets is key to avoiding operational complexity and ensuring a seamless customer experience.

Just as market participants, regulators, and infrastructure operators came together to achieve significant milestones in the transition to T+1 settlement and the move to cloud-based markets, the discussion around 24-hour trading must be guided by a collective commitment to ensure stability, resilience and trust. The interconnected nature of our financial system means that no single entity should drive such a shift in isolation.

A Long-Term Commitment to Innovation

At Nasdaq, we believe our longstanding history of technology and infrastructure investments will ensure that we will bring a world-class 24-hour trading experience, with stability, capacity, and resiliency for market participants and investors. Those features in combination with our reputation as a center of excellence for corporate listings make it a natural fit to serve the global investment community and lead the effort.

As an industry, we have always risen to the challenge. Now is the time to engage in rigorous analysis, share insights, and design systems that ensure extended trading hours enhance, rather than adversely impact, the quality of our markets. 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.

Source: Nasdaq