Nasdaq Proposes Extended Trading Hours
Nasdaq is looking to create a nearly round-the-clock trading schedule to align with the increasingly global financial market dynamics and investor behaviors. The provided documentation suggests a collaboration with the U.S. Securities and Exchange Commission (SEC).
Under the new proposal, trading for stocks and exchange-traded products (ETPs) would extend from the current 16 hours a day to a new schedule of 23 hours daily, five days a week. The updated timeline features a daytime session from 4 a.m. ET to 8 p.m. ET, which will include a one-hour pause, and will continue with an evening session running from 9 p.m. ET until 4 a.m. the following day. Trading would kick off at 9 p.m. on Sundays and conclude at 8 p.m. on Fridays, while the customary opening and closing times of 9:30 a.m. and 4 p.m. would remain unchanged, as noted in the filing.
Many cryptocurrency firms, like Coinbase, Robinhood, and several Bitcoin mining companies, are currently listed on Nasdaq. This proposed change may enhance accessibility for traders around the globe.
This initiative comes in reaction to a rising global demand from investors who wish to trade U.S. stocks outside the typical trading hours.
Nasdaq noted that although trading volumes during extended hours are generally lower than during regular hours, there’s been a noticeable spike in interest for overnight trading, particularly from investors in Asia and other regions where local business hours don’t match U.S. market hours.
At present, U.S. stock markets operate from 9:30 a.m. to 4 p.m. Eastern time, with limited pre- and post-market trading options. In contrast, cryptocurrencies trade around the clock, and this difference might have shifted investor expectations, possibly pushing exchanges towards exploring more comprehensive trading hours.
Moreover, the filing indicates a growing trend in using platforms that offer 24/7 market access for digital assets.
This concept has been a popular discussion in traditional exchanges for a while now. Notably, both Nasdaq and the New York Stock Exchange (NYSE) have hinted that extended trading hours might be on the table. In March, Jiang Bui, Nasdaq’s head of U.S. equities and ETPs, remarked that this evolution reflects where the market is heading. He also mentioned ongoing discussions with regulators, while the NYSE later secured SEC approval for its own extension.
Trades occurring between 9 p.m. and midnight during the night session would be counted for the upcoming calendar day, according to Nasdaq. This new framework is expected to better connect U.S. markets with various time zones, appealing to both institutional and individual traders who operate globally and in crypto markets.
Nasdaq aims to implement this proposal to attract order flow from investors and position itself advantageously for future trading of digital assets.
It has been reported that Nasdaq plans to submit this extension proposal on Monday.
