In a move that could revolutionise how global investors, including those in India, access Wall Street, the Nasdaq stock exchange is preparing to seek regulatory approval for near-continuous trading. The tech-heavy benchmark, home to giants like Nvidia, Apple, and Amazon, aims to introduce a 23-hour trading day, five days a week.
Nasdaq's Ambitious Plan for Global Investors
According to a Reuters report, Nasdaq submitted documents to the US Securities and Exchange Commission (SEC) on Monday, outlining its formal proposal. This marks the exchange's first major regulatory step towards nonstop trading. The shift is driven by soaring international interest in US equities, with overseas investors holding a staggering $17 trillion in US stocks last year. Nasdaq President Tal Cohen indicated that a five-day-a-week continuous trading model could potentially launch in the second half of 2026.
"We've seen the US markets themselves become much more global," said Chuck Mack, Senior Vice President of North American markets at Nasdaq. He emphasised that investors worldwide want to access the massive US market on their own terms and within their local time zones. The New York Stock Exchange and Cboe Global Markets have also announced similar plans, signalling a broader industry trend.
Proposed New Trading Schedule: What Changes?
The proposed structure represents a significant overhaul of the current market day. Currently, Nasdaq operates a pre-market session (4 am to 9:30 am ET), regular trading (9:30 am to 4 pm ET), and a post-market session until 8 pm ET.
Under the new plan, this three-session schedule would be condensed into two extended sessions:
- The Day Session: A continuous run from 4 am to 8 pm ET.
- Night Session: After a one-hour break, trading would resume at 9 pm ET and continue until 4 am the next calendar day.
Trades executed between 9 pm and midnight would be recorded for the following business day. The weekly cycle would start at 9 pm on Sunday and conclude at 8 pm on Friday. Notably, the iconic opening and closing bells at 9:30 am and 4 pm would remain unchanged within the elongated day session.
Implications, Support, and Concerns
Proponents argue that extended hours will allow international investors to react swiftly to global events occurring outside traditional US market hours. This is particularly relevant for Asian and European traders. However, major Wall Street banks have expressed concerns about potentially thinner liquidity, higher volatility, and the commercial costs of operating round-the-clock.
The transition hinges on critical infrastructure upgrades, including the securities information processor that consolidates stock prices. The US Depository Trust and Clearing Corporation is also slated to introduce nonstop stock clearing by late 2026.
Despite lower historical volumes in after-hours trading, demand for overnight access is growing. Many investors already use off-exchange platforms like Blue Ocean and OTC Moon. This move by Nasdaq formalises and centralises that demand, bringing it onto a primary regulated exchange.
This push towards a global, always-on market represents the biggest potential shift in US exchange trading hours in over a century, moving far beyond the era of physical trading floors. In a related development, Nasdaq has also recently filed to allow trading in tokenised stocks, exploring another frontier in market structure.
