Nasdaq is enhancing US equity markets by introducing 24-hour trading, five days a week. According to a report by Reuters, the exchange operator is responding to surging international demand for US stocks, boosted by growing retail participation, financial literacy, and digital trading platforms.

If approved, this move is expected to increase liquidity and access across time zones. Nasdaq has begun discussions with regulators and plans to file for approval with the US Securities and Exchange Commission (SEC).

“Nasdaq will enable 24-hour trading on the Nasdaq Stock Market. Pending regulatory approval and alignment with critical industry infrastructure providers, we anticipate our timeline being in the second half of 2026,” commented Tal Cohen, Nasdaq’s President.

Tal Cohen, Source: LinkedIn

“The global growth of investor demand for US equities means we stand at another pivotal moment for our markets – to broaden investor access, expand wealth-building opportunities, and redefine how markets function.

Broadening Investor Access

According to Nasdaq, the initiative aims to broaden investor access, expand wealth-building opportunities, by improving how markets function. The company expects to launch the extended trading model in the second half of 2026.

While Nasdaq is leading this push, it is not alone. Competitors like Cboe Global Markets and the New York Stock Exchange (NYSE), owned by Intercontinental Exchange, have also announced plans for extended trading hours

In October 2024, the NYSE disclosed plans for a 22-hour trading window, which received SEC approval in February. However, the exchange still faces additional regulatory steps before implementation.

Opportunities and Challenges of 24-Hour Trading

A move to round-the-clock trading presents several advantages. It allows traders in Asia, Europe, and other regions to participate in US markets in real-time, reducing reliance on alternative trading platforms.

Increased trading volumes and liquidity could lead to more efficient price discovery. While the SEC's approval process may take time, Nasdaq's initiative signals a shift toward a more globally integrated market structure.

If implemented successfully, 24-hour trading could redefine how investors engage with US equities, making the market more accessible and responsive to international demand.

Source: Finance Magnates