Nasdaq to File Documents with SEC for 24-Hour Trading
"The First Official Step Toward 24-Hour Trading"
Reuters reported on December 15 (local time) that the U.S. stock exchange Nasdaq plans to file documents with the U.S. Securities and Exchange Commission (SEC) to introduce 24-hour stock trading.
Previously, in March, Nasdaq CEO Tal Cohen mentioned that discussions had begun with regulators and that the exchange expects to launch 24-hour, five-day-a-week trading in the second half of 2026.
Currently, both Nasdaq and the New York Stock Exchange conduct regular trading sessions from 9:30 a.m. to 4:00 p.m. Eastern Time, Monday through Friday. In addition to regular hours, there are pre-market trading sessions (4:00 a.m. to 9:30 a.m.) and after-hours trading sessions (4:00 p.m. to 8:00 p.m.).
If Nasdaq transitions to a five-day, 24-hour trading system, it will operate two trading sessions: a daytime session (4:00 a.m. to 8:00 p.m.) and an overnight session (9:00 p.m. to 4:00 a.m. the following day). The opening bell at 9:30 a.m. and the closing bell at 4:00 p.m. during the daytime session will remain unchanged. Trades executed between 9:00 p.m. and midnight during the overnight session will be considered part of the next trading day.
Some argue that the implementation of 24-hour trading would allow overseas investors to respond more quickly to events occurring outside of regular trading hours. On the other hand, major Wall Street banks are cautious about the shift to continuous trading, citing concerns about reduced liquidity, increased volatility, and uncertainty regarding profitability relative to investment.
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Chuck Mack, Senior Vice President of Nasdaq North American Markets, stated that although trading volume during extended hours is much lower than during regular sessions, demand for trading during U.S. overnight hours is surging. He added, "Investors around the world want to access the market in their own time zones."
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