Earlier this month, Nasdaq asked regulators for permission to expand trading hours to 24 hours a day, Monday through Friday on the exchange. Tal Cohen, President of Nasdaq, shared “Our timeline is pending regulatory approval and alignment with critical industry infrastructure providers, which we anticipate being in the second half of 2026.” Nasdaq must obtain sign off from the SEC before moving ahead, and those familiar with the plans have said they intend to file for such approval soon.

This move comes after the New York Stock Exchange (NYSE) in October announced plans to allow customers to trade 22 hours a day on its electronic Arca exchange (1:30 am to 11:30 pm EST). In February, the NYSE received approval from the SEC that could allow this proposed change to move forward. The Chicago Board Options Exchange (Cboe) also announced a proposal to move to 24-hour weekday trading in early February.

What would this move mean for the markets, investors, and global finance as a whole? Let’s dive in!

5 Potential Major Implications

Increased Liquidity & Trading Volume

More trading hours = more opportunities for buying and selling = the potential for increased liquidity. This would be especially true during historically low volume periods (like the current pre-market and after-hours trading windows). Tighter bid-ask spreads could ultimately lead to lower transaction costs for investors.

Greater Access for Global Investors

The move could boost global participation in U.S. markets, as there has been increasing international demand for U.S. stocks (especially by investors with different time zones).

More Volatility & Price Discovery

While news and earnings reports could be priced in more quickly (potentially reducing large price gaps between market close and the next day’s open), this could also lead to increased short-term volatility. Events may be digested in real-time, instead of a fixed and condensed market session.

Increased Pressure on Market Infrastructure & Traders

24-hour trading Monday through Friday would put increased pressure on market makers, exchanges, and brokerage firms, as systems may have to be upgraded to provide around-the-clock reliability. Institutional investors, hedge funds, and algorithmic traders would likely need to adapt their strategies to continuous weekday trading.

Impact on Traditional Market Hours & Jobs

While this move may decrease the importance of the traditional opening and closing bell volatility spikes, it could significantly impact the work schedules of market professionals (traders, brokers, and analysts would require continuous weekday coverage).

Crypto’s Influence on the Decision

The rise of digital asset markets – which operate 24/7 – have likely played a significant role in the decisions of the Nasdaq, NYSE, and Cboe.

Changing Investor Expectations

Both institutional and retail investors alike have grown accustomed to the 24/7 nature of crypto trading. This has acted as a sort of proof of concept that these markets can operate outside of traditional trading hours.

Increased Competition from Digital Assets

As bitcoin and other cryptocurrencies have become a serious and recognized asset class, traditional exchanges may be feeling pressure to offer extended trading to remain competitive.

Advances in Technology & Market Infrastructure

Infrastructure developed by major crypto exchanges has demonstrated that 24/7 trading may be perfectly feasible.

Potential Challenges

1. Regulatory & Compliance Issues: More trading hours could mean more regulatory oversight and compliance requirements.
2. Market Maker Participation: Attempting to ensure sufficient liquidity providers during all trading hours could pose a challenge to this change to continuous weekday trading.
3. Burnout & Work-Life Balance: Traditional trading desks may need to adapt, likely to a similar model used by crypto desks (rotating shifts).

My Thoughts

While a shift to 24-hour trading could make markets more efficient and accessible, it would require significant adjustments for traders, exchanges, and regulators. As investor expectations continue to shift due to 24/7 access to crypto markets, traditional exchanges are racing to keep up.

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