Nasdaq, the second-largest stock exchange in the United States, is seeking regulatory approval to extend trading hours on its stock platforms to 23 hours during weekdays.
According to a request submitted by the operator to the U.S. Securities and Exchange Commission on Monday, Nasdaq is seeking to add an additional trading session from 9 p.m. to 4 a.m. Eastern Time.
The company explained that the session will be added to the current trading hours before the market opens, during the market, and after closing.
Chuck Mack, senior vice president of North American markets at Nasdaq, said in an emailed statement: “This development reflects the simple fact that global investors expect to have access to markets on their terms and in their time zones, without compromising trust or market integrity.”
Extended trading hours in response to global demand
The exchange thus joins its counterparts in promoting the growing interest in trading US stocks outside of traditional market hours, which run from 9:30 a.m. to 4 p.m. Eastern Time, Monday to Friday.
Earlier this year, Nasdaq announced its intention to offer additional trading hours on its stock exchange, in an effort to capitalize on growing global demand for U.S. stocks.
The exchange expects to be ready to launch extended trading as early as the third quarter of 2026, provided that the necessary regulatory approvals are obtained and coordination with the rest of the sector is completed.
Other exchanges have also revealed their own plans to extend trading hours, including the New York Stock Exchange, which plans to offer 22-hour trading on weekdays.
This proposal received initial approval from the Securities and Exchange Commission in February, pending updates to the market data broadcasting system.
Infrastructure requirements and supporting entities
To achieve this goal, key entities, including Depository Trust & Clearing Corp., which is responsible for clearing operations, and the securities information providers' operating committees, which display real-time prices, must also extend their working hours.
Both institutions have already submitted their plans, with Depository Trust & Clearing reporting that it intends to begin clearing stock trades 24 hours a day, five days a week, by the second quarter of 2026.
Extended trading hours became more common during the coronavirus pandemic, as they allowed investors to react instantly to market-moving events.
Companies such as Robinhood Markets and Interactive Brokers Group have begun enabling their clients to buy and sell US stocks 24 hours a day, five days a week, through over-the-counter trading platforms such as the alternative trading system BlueOcean.
Controversy on Wall Street over the quality of trading
Wall Street is divided over trading platforms offering extended hours. Supporters argue that investors both in the US and abroad want access to and interaction with stocks outside of US market hours. Opponents, however, warn that trading quality could suffer due to reduced volumes, potentially leading to less accurate pricing.
Much of the trading activity remains concentrated around the famous opening and closing bells of the major US stock exchanges. With the addition of new hours, a question arises as to whether institutional traders will begin executing their trades outside of these typically higher-volume trading hours.
