In a significant move to adapt to the evolving landscape of global finance, Nasdaq has filed a proposal with the U.S. Securities and Exchange Commission (SEC) to extend its trading hours for stocks and exchange-traded products (ETPs) from 16 hours to 23 hours per day. This initiative aims to meet the demands of a diverse and international investor base, reflecting the trends established by the cryptocurrency market.
The new trading schedule will feature a day session from 4 a.m. to 8 p.m. ET, followed by a one-hour break, and a night session from 9 p.m. to 4 a.m. ET the next day. The trading week will commence on Sunday at 9 p.m. and conclude on Friday at 8 p.m., while the traditional opening and closing bells will remain intact at 9:30 a.m. and 4 p.m., respectively.
This change is particularly relevant as many publicly traded cryptocurrency companies, including Coinbase, Robinhood, and MicroStrategy (MSTR), are listed on Nasdaq. The extended hours would enhance accessibility for investors around the globe, particularly those in Asia and other regions where local business hours do not align with U.S. trading times.
Currently, U.S. stock markets operate primarily from 9:30 a.m. to 4 p.m. ET, with limited pre-market and post-market sessions. In contrast, cryptocurrencies operate 24/7, setting a precedent for continuous trading that has reshaped investor expectations. Nasdaq noted in its filing that there is a rising interest in trading during non-standard hours, especially among international investors.
Despite extended trading hours typically seeing lower volumes compared to regular market hours, Nasdaq has observed a marked increase in overnight trading interest. The exchange aims to capture order flow from these traders while positioning itself competitively for the future, particularly in markets that involve digital assets.
The proposal aligns with broader trends in the financial industry, as both Nasdaq and the New York Stock Exchange (NYSE) have hinted at the necessity for extended trading options. Nasdaq”s Giang Bui, head of U.S. equities and ETPs, indicated earlier this year that this transition is a natural progression for the markets. The NYSE has also received SEC approval for its own extended hours.
For trades executed between 9 p.m. and midnight during the night session, Nasdaq has stated that they will count toward the following calendar day. This new structure is designed to provide enhanced access to U.S. markets across various time zones and could attract both institutional and retail traders who are active in cryptocurrency markets.
As this proposal develops, it reflects Nasdaq”s commitment to evolving alongside investor needs and the dynamic nature of global trading, positioning itself favorably in a landscape increasingly influenced by digital assets.
