Nasdaq Files for Near 24-Hour Weekday Trading as Extended Hours Race Accelerates

Nasdaq submitted a formal request to the Securities and Exchange Commission (SEC) yesterday (Monday) to expand its trading hours to 23 hours per weekday, adding a late-night session that would run from 9 PM to 4 AM Eastern Time.

The filing represents the latest regulatory step in the exchange industry's broader shift toward continuous trading. Nasdaq already operates pre-market, regular, and after-hours sessions, but the new overnight window would extend access for international investors and respond to growing retail demand for flexible trading times.

"Global investors expect access on their terms, in their time zones, without compromising trust or market integrity," Chuck Mack, Senior Vice President of North American Markets at Nasdaq, commented for Bloomberg.

24-Hour Trading Competition Heats Up Among Major Exchanges

Nasdaq's application follows similar moves by its rivals. The New York Stock Exchange received initial SEC approval in February for a 22-hour weekday trading schedule, though implementation depends on data feed infrastructure upgrades. Cboe Global Markets has also outlined plans to extend hours on its venues.

If approved, Nasdaq expects to launch the extended session in early third quarter 2026. That timeline assumes regulatory clearance and coordination with industry infrastructure, which remains a significant hurdle.

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The push toward longer hours gained momentum after retail brokers like Robinhood Markets and Interactive Brokers started offering 24/5 trading on alternative venues. One-third of eToro's trades now occur during extended market hours, reflecting retail appetite for flexible access.

Meanwhile, 24X Exchange partnered with TNS to offer extended-hours trading ahead of the major exchanges.

Infrastructure Providers Must Align for Launch

Extended trading across major exchanges requires coordination from key market infrastructure players. The Depository Trust & Clearing Corp., which handles trade settlement, submitted plans to offer 24-hour clearing five days a week by second quarter 2026. The Operating Committees of the Securities Information Processors, responsible for consolidated market data, also need to extend their hours.

Without these providers operating during overnight sessions, exchanges can't effectively support extended trading.

Asian-based investors have welcomed the development. "It effectively brings US stocks into our local trading hours, increasing liquidity and allowing investors here to react in real time instead of waiting for overnight sessions," said Dilin Wu, Research Strategist at Pepperstone Group in Australia.

Liquidity Concerns Persist Despite Enthusiasm

Market participants remain split on whether extended hours will deliver the benefits exchanges promise. Trading activity still concentrates around the opening and closing bells when volume is highest and pricing is most efficient. The question is whether institutional traders will migrate to overnight sessions or stick with traditional hours.

Critics have warned that lower volume during off-hours could lead to wider spreads and more volatile price swings, particularly when major news breaks and fewer traders are active. The World Federation of Exchanges previously cautioned that 24/7 trading is "not inevitable nor universally desirable," citing concerns about market quality and investor protection.

The pandemic accelerated adoption of extended trading as investors sought immediate reaction to after-hours events. That trend shows no signs of reversing, with retail brokers reporting sustained demand for flexible hours even as markets normalized post-pandemic.